The CMA is investigating the supply and acquisition of investment consultancy and fiduciary management services in the UK.
Date of reference: 14.9.17
Statutory deadline: 13.3.19
The administrative timetable will be published in due course.
Inquiry group appointed
20 September 2017: The CMA appointed the inquiry group on 19 September 2017.
Disclosure of interest
A number of members of the group have declared internally that they have investments in funds or investment vehicles administered as retail products by companies that provide fiduciary management services. It is also likely that those companies have business relationships with investment consultancies who are main parties to this investigation, but the members are not aware of these. We consider that these retail-side connections with potential parties in this investigation will not affect the ability of the members to perform their functions independently or impartially.
We intend to publish an issues statement on this case page shortly, which will set out the proposed scope of our investigation and areas where we would welcome evidence and information from any interested parties. We suggest that interested parties should await this statement before making any substantial submission to the CMA on this matter.
Terms of reference
14 September 2017: The FCA’s terms of reference for the CMA’s investigation can be found below.
14 September 2017: The FCA has referred the supply and acquisition of investment consultancy services and fiduciary management services to and by institutional investors and employers in the UK to the CMA for a market investigation.
- Press release: CMA launches market investigation into investment consultants (14.9.17)
In November 2016, the Financial Conduct Authority (FCA) published the interim report on its Asset Management Market Study. As part of this interim report the FCA proposed that the market for investment consultancy services should be referred to the CMA for a market investigation.
On 20 February 2017, the 3 largest investment consultants made a joint offer of undertakings in lieu of a reference (UILs). On 28 June 2017, the FCA wrote to the 3 firms to explain why, after careful review, it reached the provisional view to reject the UILs.
In June 2017, the FCA published the final report on its Asset Management Market Study. Having considered responses to the interim report the FCA remained of the view that there were reasonable grounds for suspecting that features of the investment consultancy market were preventing, restricting or distorting competition. As part of the final report, the FCA proposed rejecting the UILs and sought views from parties before making its final decision. The public consultation on these proposals closed on 26 July 2017.
On 14 September 2017, the FCA published its decision to refer the supply and acquisition of investment consultancy services and fiduciary management services to institutional investors and employers in the UK to the CMA for a market investigation.
Please see the FCA’s Asset management market study case page for more information.