Tom Barton, a Pensions partner at international law firm Pinsent Masons commented: “The final report is not quite as final as it could be. As appeared likely, the FCA has reserved judgement in a number of key areas and paved the way for consultation and investigation. The report also rightly notes that some of the interim findings are already being addressed by developments at European level such as MiFID II. The story is therefore yet to unfold in full – but it will certainly include an interesting chapter on consolidation of pension schemes. The FCA’s recommendation to the DWP to “remove barriers” to consolidation should help the drive towards economies of scale.”
Robert Eriksson, a senior associate in the EU & Competition law team at Pinsent Masons added: “The FCA has now postponed until September its decision whether to make a market investigation reference to the Competition & Markets Authority of the market for investment consultancy services to institutional and employers. It is seeking views by 26 July 2017 on its provisional decision to reject the undertakings in lieu of a reference that were offered. A CMA market investigation would run for at least 18 months, which at times would be intensive. The CMA often requires vast amounts of information to be provided under very tight deadlines, which can also involve third party companies that are not at the heart of the market investigation. It is important to stress, however, that a market investigation would not be an investigation into any individual firms’ potential infringements of competition law, but is market-wide and seeks to determine whether competition is working well within a market; and, if not, how to address that. Looking at the wider asset management sector, the FCA’s net is now also widening with the FCA launching a Market Study on Investment Platforms.”
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