Investment consultants market investigation
Fiduciary management tendering could cut fees by 20% - CMA
Tendering for fiduciary management has led to fees being reduced by between 19% and 22%, latest analysis by the Competition and Markets Authority (CMA) finds.
Final CMA decision likely by Christmas; remedies enforced from June 2019
Investment consultants and fiduciary managers should expect a final decision on the investigation into the market to be published by the end of the year, the competition watchdog says.
Mercer slams 'data errors' in CMA probe's 'unreliable' analysis
Errors in the Competition and Markets Authority's (CMA) data analysis make its provisional decision on the investment consultants market investigation "flawed", and lacks an "adequate evidential basis" to impose remedies, Mercer has said.
Industry issues verdict on CMA plans
The CMA investigation into the investment consultants and fiduciary managers market is drawing to a close. James Phillips looks at reaction to the provisional decision
Govt should fine or disqualify pension-dodging directors
The majority of Pensions Buzz respondents said directors who avoid obligations should be penalised.
Exclusive: PLSA calls for mandatory FM tenders to be run on closed basis
Mandatory tenders for fiduciary management services should be conducted on a closed basis with no minimum threshold for the number of managers involved, the Pensions and Lifetime Savings Association (PLSA) says.
CMA remedies need tightened 'rulebook', says Aon
Proposed remedies for the investment consultant and fiduciary management market will need a substantially clearer rulebook in order to be practical, Aon has warned.
Do the CMA's proposals go far enough?
Jonathan Stapleton says the jury is out on whether or not the competition watchdog has gotten it right with its proposals for consultants and fiduciaries.
Industry split on whether CMA proposals go far enough
Respondents were almost evenly split in this week's Pensions Buzz on whether the Competition and Markets Authority's (CMA) remedies for the investment consultant and fiduciary management markets go far enough.
CMA report 'pragmatic and realistic' while mandatory tendering 'will bring better value'
Proposals for mandatory tendering of fiduciary management services, as well as additional guidance for trustees, have been welcomed by industry commentators albeit with some caution.
CMA: We want to help schemes drive competition among consultants
John Wotton says the competition watchdog's package of proposals will help trustees get the best deal and be satisfied they are acting in their members' best interests
How consultants and fiduciaries have reacted to the CMA's provisional decision
The Competition and Markets Authority (CMA) published its provisional decision on its investment consultant market investigation this morning. Here is the reaction from consultants and fiduciaries…
UPDATE: CMA proposes mandatory tenders for FM mandates but spares investment consultant market from widespread change
Investment consultants have been spared a major shake-up in their operations and business models after an investigation by the competition watchdog proposed just a handful of remedies.
CMA to publish initial decision on investment consultancy market on Wednesday
The Competition and Markets Authority (CMA) will publish its provisional decision as to whether there are adverse effects on competition in the investment consultants market on the morning of 18 July.
Mixed views on £1m max fine for failure to report corporate events
Respondents were split in this week's Pensions Buzz on whether the £1m maximum penalty for failing to notify The Pensions Regulator (TPR) of certain corporate events was appropriate.
IC Select finds just 3% of schemes retendered investment consultants last year
The number of pension schemes retendering for investment consulting services has dropped sharply over the last decade, IC Select research reveals.
CMA: Tenders and professional trustees lead to lower fiduciary management costs
The investment consultant and fiduciary management market "may not be working well for pension schemes which are not engaged", the Competition and Markets Authority (CMA) has said.
PLSA: 'Micro-managerial' regulation has driven down trustee engagement with advisers
Regulation aimed at improving the governance of occupational pension schemes has left the sector "regulated to the lowest common denominator" with a "prescriptive and micro-managerial approach".
UPDATE 2: CMA working papers show no concerns over market concentration
The Competition and Markets Authority (CMA) has published three working papers as part of its probe into investment consultants and fiduciary managers - saying it has no concerns over concentration in these markets.
Time and costs may be barrier to switching fiduciary manager, CMA finds
The time and costs involved in the process of tendering and/or switching a fiduciary manager can be 'considerable' and may make it more difficult for schemes to assess value for money and switch provider.
CMA: Evidence consultants 'steer' clients towards own fiduciary management services
The CMA's latest working paper finds trustees are very likely to choose their existing investment consultant for a fiduciary management mandate without third-party advice, James Phillips reports
Investment consultants fail to add value in product recommendations, says CMA
Investment consultants are failing to recommend products that outperform net of fees, the Competition and Markets Authority (CMA) has said as its investigation into the market continues.
CMA: Competitive processes not providing trustees with 'necessary information' to judge value for money of ICs and FMs
The Competition and Markets Authority (CMA) has released a working paper detailing its analysis around the information available to trustees on the fees and quality of investment consultants and fiduciary managers.
Letter: Trustees as well as investment consultants must address weaknesses
Rory Murphy, trustee chairman of the Merchant Navy Officers Pension Fund (MNOPF), says trustees must do more to share best practice in bid to improve outcomes.
