The Pensions and Lifetime Savings Association (PLSA) has responded to the FCA’s consultation on its provisional view to reject the Undertakings in Lieu (UIL) of a market investigation reference of investment consulting services.
Caroline Escott, Investment and DB Policy Lead, Pensions and Lifetime Savings Association, commented:
“Pension funds have £1.9tn of assets under management in the UK, representing 57% of all institutional investments. Both Defined Benefit and Defined Contribution schemes are significant users of the services provided by investment consultants.
“Investment consultants can play a positive role in the institutional investment chain, adding value for institutional investors and scheme members. However, although some PLSA members have said they are happy with the services offered by their consultants, others have consistently expressed their concerns about the potential misalignment of incentives in the industry.
“The UIL contained many welcome commitments to addressing the issues highlighted by the FCA as part of its market study. Nonetheless, we believe there is insufficient market coverage or detail within the UIL for it to provide a truly comprehensive solution. The FCA identified issues on both the demand- and the supply- side of what is a complex and evolving market; a Competition and Markets Authority (CMA) investigation could probe competition issues in greater depth and recommend far-reaching solutions. We would therefore support a referral to the CMA and hope such a step would ensure a market which works in the best interests of pension schemes and their members.”
A copy of the PLSA's response can be found here.
NOTES TO EDITORS
ABOUT THE PENSIONS AND LIFETIME SAVINGS ASSOCIATION
We’re the Pensions and Lifetime Savings Association; the national association with a ninety year history of helping pension professionals run better pension schemes. Our members include over 1,300 pension schemes with 20 million members and £1 trillion in assets, and over 400 businesses. They make us the voice for pensions and lifetime savings in Westminster, Whitehall and Brussels.
Our purpose is simple: to help everyone to achieve a better income in retirement. We work to get more money into retirement savings, to get more value out of those savings and to build the confidence and understanding of savers.
Lee Blackwell, Head of Media & PR, Pensions and Lifetime Savings Association
T: 020 7601 1726, M: 07713 073 023, E: [email protected]
Kathryn Mortimer, Press Officer, Pensions and Lifetime Savings Association
T: 020 7601 1748, M: 07901 007713, E: [email protected]