The difficulty in comparing and swapping consultant providers will also come under the scope of a recently launched investigation into the industry by the Competition and Markets Authority (CMA).
The probe was launched after the FCA referred the case to the watchdog following its Asset Management Market Study published in June, and the full scope of the investigation was released on Thursday.
While the investigation will have most impact on the consultants supporting institutional pension funds, it will also affect to fiduciary management services where the provider is selecting funds for an investor.
John Wotton, recently named as chairman of the investigation group, said: “It is extremely important that the investment consultancy sector works effectively for its clients, which include many of the UK’s biggest pension funds, and we want to ensure we are looking at the right issues.
“That is why we are urging people to get in touch if they have any evidence to share or views about whether these are the correct areas for us to be investigating.”
Solicitors Lesley Ainsworth and Bob Spedding, as well as economist Tim Tutton, have been named as members of the investigation group.
Some of the largest investment consultant firms have pledged to cooperate with the investigation after their offer to conduct undertakings in lieu was roundly rejected by the FCA.
How do I respond to the investigation?
Responses to the issues raised by the CMA can be emailed to investmentconsultants@cma.gsi.gov.uk or posted to:
Project Manager
Investment Consultancy Market Investigation
Competition and Market Authority
Victoria House
Southampton Row
London
WC1B 4AD
The deadline for responses is 12 October 2017.
