The Competition and Market Authority (CMA) has today released its provisional decision report, as part of its Investment Consultants Market Investigation.
The Pensions and Lifetime Savings Association (PLSA) is supportive of this work given our members’ concerns around potential misalignment of interests in the sector, and also the need for savers to have an investment chain that works in their best interests. In order to achieve this, the system must work efficiently and be transparent.
Caroline Escott, Policy Lead: Investment & Defined Benefit, PLSA, said:
“With millions reliant on pensions to fund their retirement, it’s crucial we have an investment market that works efficiently and transparently, and serves the interests of both pension schemes and savers. This investigation is an important step in helping pension trustees recognise when their investment consultants and fiduciary managers are performing well, as well as understanding what actions to take when they are not.
“We are pleased the CMA has focused on improving information around fees and investment performance, and we also support moves to improve the tendering process through greater guidance and ensuring schemes have to run an initial tender for fiduciary management services. One of our members’ main concerns about this market is the potential conflict of interest when investment consultant firms steer their pension schemes clients to their in-house fiduciary management services. Given the CMA's findings in this area, we therefore welcome broadening the Financial Conduct Authority’s oversight of investment consultants.”
ABOUT THE PENSIONS AND LIFETIME SAVINGS ASSOCIATION
We’re the Pensions and Lifetime Savings Association; we bring together the pensions industry and other parties to raise standards, share best practice, and support our members. We represent over 1,300 pension schemes with 20 million members and £1 trillion in assets, across master trusts, defined benefit, and defined contribution schemes, and local government funds. Our members also include some 400 businesses which provide essential services and advice to UK pensions providers.
Our mission is to help everyone to achieve a better income in retirement. We work to get more people and money into retirement savings, to get more value out of those savings, and to build the confidence and understanding of savers.
Robyn Margetts, Head of Media and PR, Pensions and Lifetime Savings Association
T: 020 7601 1726, M: 07713 073023, E: [email protected]
Steven Kennedy, PR Manager, Pensions and Lifetime Savings Association
T: 020 7601 1737, E: [email protected]
Kathryn Mortimer, Press Officer, Pensions and Lifetime Savings Association
T: 020 7601 1748, M: 07901 007 713, E: [email protected]