22/09/2017
Scope of investment consultancy market investigation (UK)
An issues paper setting out the proposed scope of the recently announced monopoly investigation into investment consultancy and fiduciary management services * provided to institutional investors (mainly pension funds) has been published by the Competition and Markets Authority.Â
‘Investment Consultancy Services & Fiduciary Management Services: Market Investigation: Statement of Issues’ sets out a structure for investigation into potential issues and remedies grouped in the following three areas
- whether difficulties in customers’ ability to assess, compare and switch investment consultants mean the consultants have little incentive to compete for customers
- whether conflicts of interest on the part of investment consultants reduce the quality and/or value for money of the services they provide
- whether barriers to entry and expansion mean there are fewer challengers to put pressure on the established investment consultants to be competitive
CMA would welcome views on whether the correct issues and remedies have been identified and whether any others should be included.
* ‘Investment Consultants Face Monopoly Investigation (UK)’ (CPA News, 19 October).