Investment - Articles - PLSA comment on final FCA decision on CMA referral

 Caroline Escott, Policy Lead: Investment and Defined Benefits at the PLSA, said: “We welcome the decision of the FCA to make a market investigation reference to the Competition and Markets Authority (CMA). Workplace pension schemes have £1.9tn of assets under management in the UK and pension schemes represent 57% of all institutional investments. Both Defined Benefit and Defined Contribution schemes are important users of the services provided by investment consultants, including fiduciary management.

 “Investment consultants can play a positive role in the institutional investment chain, and many PLSA members have told us they are happy with the services offered by their investment consultants. Nonetheless others have expressed concerns about the potential misalignment of incentives in the sector and the FCA’s studies have highlighted competition issues on both the demand- and the supply- side.

 “We hope that the CMA investigation can examine these issues in depth and recommend comprehensive solutions. We do however urge the CMA to be mindful of the need for any investigative measures taken to be proportionate and timely to prevent avoidable costs or uncertainty for schemes during its review.

 We look forward to working with the entire breadth of our membership, including asset managers, consultants and pension schemes to support the CMA in its investigation and work towards a market aligned with the best interests of pension schemes and their members.”