Richard Dowell, Head of Clients at Cardano commented: “The CMA has done a very thorough job of investigating this market and has put forward pragmatic and proportionate remedies which we believe will help improve the functioning and transparency of an important service for both trustees and pension beneficiaries.
“Today’s final report does not depart radically from the provisional decision over the summer, thereby validating the initial findings and remedies put forward.
“Of course, with 440 pages to read, the long-term impact of the CMA’s proposals rests contingent on the industry’s ability to digest and implement the detail.
We would encourage the industry to adopt the CMA’s recommendations as soon as possible - and not to wait until the end of 2019.
“The CMA’s collaboration with the industry’s regulators is exactly what is needed within the market. With solid proposals put forward to address the sell side, the ball is now in the Regulator’s court to ensure that these measures are effective for trustees on the buy side.”
Patrick McCoy, Head of Investment, XPS Pensions Group said: “The remedies will have significant consequences for the fiduciary management market which has been dominated by the Big 3. In the investment consulting industry, the CMA found that ‘below average’ quality firms have substantially higher market shares. So increased competition in both markets will provide better outcomes for pension funds.”
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