The UK’s Competition and Markets Authority (CMA) has completed its changes to the investment consultancy and fiduciary management sectors with new rules covering the appointment of service providers by pension scheme trustees, and information provided to them.

The CMA order (24 page / 230KB PDF) is the conclusion of an investigation into the supply and acquisition of investment consultancy services and fiduciary management services to and by institutional investors and employers in the UK.

The investigation began in 2017 and the CMA published its reform plans in December last year.

The finalised rules provide for a number of requirements on pension scheme trustees, investment consultants and fiduciary management firms. There are some exemptions for small schemes and some public service schemes, as well as master trusts operated by firms offering investment consultancy and fiduciary management services.

Pension scheme trustees wishing to delegate investment decisions for 20% or more of their scheme assets need to run a competitive tender including at least three firms.

If trustees want to increase the proportion of assets managed under a fiduciary management contract by a single firm from less than 20% to more than 20%, they also need to conduct a competitive tendering exercise.

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