Tenders on the menu for UK pension schemes
The UK competition regulator is proposing regulatory changes designed to ensure pension schemes pressure the market into providing the best value for members.
The Competition and Markets Authority (CMA) is concerned competition problems exist within the UK’s investment consultancy and fiduciary management markets. The regulator pointed out that about half of the UK’s pension schemes use the same provider for both fiduciary management and investment consultancy.
According to the regulator, trustees are vulnerable to pressure from their investment consultant which may offer both services. The CMA said investment consultants offering both services had an advantage over other firms, given they can steer trustees towards awarding fiduciary management mandates towards their already engaged investment consultant.
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