The Pensions and Lifetime Savings Association has commented on the FCA's final asset management market study findings, and the announcement of the package of remedies it will take forward to address the concerns identified in its interim report into the sector.
Graham Vidler, Director of External Affairs at the Pensions and Lifetime Savings Association said:
“Pension funds have over £1.9tn assets under management in the UK and are some of the investment management industry’s largest clients. The PLSA has been calling for greater cost transparency and expressed concerns about cost levels for some time. These issues ultimately impact the value of people’s retirement savings and we therefore welcome the FCA’s commitment to address the serious issues facing the market.
“The report’s proposals on consolidation and governance reflect our Defined Benefit Taskforce’s work in this area. The taskforce’s research suggested that larger schemes could use their size to achieve savings on their asset management fees. We also believe that common governance arrangements, where schemes are brought under the supervision of fewer but more experienced trustees, could also mean schemes are better able to scrutinize and hold their asset managers to account. We strongly welcome the FCA’s commitment to working with the DWP to remove barriers to consolidation and pooling.
“Institutional investors, however large and however well-governed, need a competitive, transparent market in order to deliver the best outcomes for their members. This report makes important recommendations relating to the disclosure of investment costs and scrutiny of consultants working in the institutional market. We look forward to continuing to work with the FCA to develop these proposals and support the development of an investment management sector that works in the best interests of pension schemes and their members.”
NOTES TO EDITORS:
Figures: Assets under management – Investment Association – 2015/16
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, Interim Head of Media & PR, Pensions and Lifetime Savings Association
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