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<p>The principal finding of the Competition and Markets Authority’s (CMA) 2018 Investment
Consultants Market Investigation report was that the investment consultancy and fiduciary
management market was insufficiently competitive, leading to adverse impacts for their
customers. One of the recommendations of that report was that investment consultants
should be brought into Financial Conduct Authority’s (FCA) regulation.</p><p> </p><p>In
the March 2019 response to the recommendations of the CMA’s final report, HM Treasury
committed to consulting on the CMA’s recommendation that the FCA’s regulatory perimeter
be extended to cover the activities of investment consultants. A number of other priorities,
including the urgent work required to respond to the Covid-19 pandemic, meant that
the work to develop this consultation has been delayed.</p><p> </p><p>However, a number
of other recommendations made by the CMA to address competition in this market have
been taken forward, such as the Department for Work and Pensions’ legislation requiring
pension scheme trustees to carry out a competitive tender for fiduciary management
services.</p><p> </p><p>HM Treasury works closely with the FCA and has held regular
discussions with them on this matter.</p>
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