UK’s pension investment advisers to face full competition probe
Britain’s competition regulator has launched an investigation into investment consultants following concerns about conflicts of interest in an industry advising on the management of over 1.6 trillion pounds ($2 trillion) of pension and other funds.
The Financial Conduct Authority said on Thursday it has referred its concerns to the Competition and Markets Authority for a full investigation, the first time it has referred a case to the CMA as part of a broader effort to improve value for money and transparency in the asset management industry.
Investment consultants advise pension schemes, charities, endowment funds and insurers on their investment strategy and choice of investment managers and funds. Aon (AON.N), Mercer and Willis Towers Watson (WLTW.O) dominate the sector, with a combined market share of 50-80 percent, the FCA said.
“We have serious concerns about this market and believe that the CMA is best placed to undertake this work,” Christopher Woolard, the FCA’s executive director of strategy and competition, said in a statement.
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