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
- Full administrative timetable (22.9.17)
Research with pension scheme trustees: invitation to comment
16 October 2017: On 21 September, the CMA appointed IFF Research to survey trustees of UK occupational pension schemes as part of its investigation. The research will aim to gather evidence on how pension scheme trustees use investment advisory and fiduciary management services and how they view these markets.
We welcome comments on the proposed methodology and draft questionnaire by 9am on 20 October 2017.
- Invitation to comment (16.10.17)
The publication of the evidence of any party on the CMA’s webpages does not indicate in any way endorsement by the CMA of the views expressed in the evidence or acceptance of that evidence. Publication in this way is designed to assist public understanding of the issues.
Responses to issues statement
- Aon Hewitt Limited (9.11.17)
- Barnett Waddingham LLP (9.11.17)
- B&Ce (9.11.17)
- Cardano Risk Management Limited (9.11.17)
- First Actuarial LLP (9.11.17)
- Hymans Robertson LLP (9.11.17)
- IC Select (9.11.17)
- The Law Debenture Pension Trust Corporation p.l.c. (9.11.17)
- Local Government Association (9.11.17)
- Mercer Limited (9.11.17)
- Pensions Infrastructure Platform (9.11.17)
- Punter Southall Investment Consulting Limited (9.11.17)
- Redington Ltd (9.11.17)
- Spence & Partners Limited (9.11.17)
- Stamford Associates Ltd (9.11.17)
- Willis Towers Watson (9.11.17)
- Yoke and Company (9.11.17)
- ACMCA Limited (23.10.17)
- BBS Consultants and Actuaries Ltd (23.10.17)
- BlackRock Investment Management (UK) Limited (23.10.17)
- Capita Employee Benefits (23.10.17)
- JLT Benefit Solutions Limited and JLT Investment Management Limited (23.10.17)
- KPMG LLP (23.10.17)
- Lane Clark & Peacock LLP (23.10.17)
- Legal & General Investment Management (23.10.17)
- The Pensions & Lifetime Savings Association (23.10.17)
- P-Solve Investments Limited (23.10.17)
- Schroders plc (23.10.17)
- SEI Investments Europe Limited (23.10.17)
- The Investment Association (23.10.17)
- The Society of Pension Professionals (23.10.17)
- Aon Hewitt (9.10.17)
21 September 2017: The issues statement sets out the scope of the investigation. It outlines initial theories on what might be adversely affecting competition and potential remedies to address any adverse effects we may find. It doesn’t set out findings or conclusions.
- Issues statement (21.9.17)
- Press release: CMA sets out scope of investment consultancy market investigation (21.9.17)
Market research agency appointment
21 September 2017: The CMA proposes to survey trustees of UK occupational pension schemes as part of its investigation and has now appointed market research agency IFF Research to conduct the survey on its behalf.
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.
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.
Published: 14 September 2017
Updated: 9 November 2017
Opened: 14 September 2017
- Responses to issues statement published.
- Responses to issues statement published (under ‘Evidence’).
- Invitation to comment on proposed methodology and draft questionnaire for research with pension scheme trustees.
- Initial submission published.
- Full administrative timetable published.
- Issues statement published and market research agency appointed.
- Inquiry group appointments added.
- First published.