UK pension consultants prepare for era of no-nonsense
They kept a low profile as banks and other pillars of the finacial services industry were upbraided by regulators.
Now the consultants who influence how trillions of pounds of pensions are invested are finally under pressure. Any hopes the industry had of avoiding a full-scale antitrust probe were dashed last week by the City watchdog.
Dominated by three big players – Mercer, Aon Hewitt and Willis Towers Watson – consultants had avoided the gaze of the Financial Conduct Authority (FCA), despite their crucial role in how pension funds invest. The twelve largest consultants advise on £1.6trn of assets, rate asset managers and advise investors on how to allocate their money.
Now the City regulator is cracking down, after finding a concentrated industry with opaque charges and widespread conflicts of interest, most notably among consultants that invest money on behalf of a trustee, a process known as fiduciary management.
Full Content: Telegraph
