View more on these topics

FCA calls for investigation into investment consultant competition

The FCA has confirmed its decision to refer the investment consultant sector to the Competition and Markets Authority for investigation.
The FCA first flagged its concerns in its asset management market study, including the potential for vertically integrated business models to create conflicts of interest.
It also outlines today it believes there is a weak demand side in the market, where trustees have only a limited ability to assess advice quality or compare services despite relying on them heavily.
The FCA had rejected proposals offered by Aon Hewitt, Mercer and Willis Towers Watson – who the FCA is concerned have between 50 and 80 per cent market share – to avoid investigation.
Strategy director Christopher Woolard says the decision to refer the market is a “significant step” for the regulator.
He says: “We have serious concerns about this market and believe that the CMA is best placed to undertake this work.”

Recommended

3

Embark: New platform will be ‘material disruptor’ on price

Embark Group’s new wrap platform will officially launch by the end of the month, partnering with investment giant BlackRock on account fund management and aiming to be a “material disruptor” with its pricing model. Embark, which is the parent company of Sipp provider Hornbuckle, SSAS provider Rowanmoor and fund researcher The Adviser Centre, says the […]

Advice profession remains in rude health, latest report shows

The advice sector remains in rude health, with financial advisers buoyant about future business prospects and looking to expand despite the economic uncertainty caused by Brexit, according to a new report. The Aegon Adviser Attitudes report finds that four out of five advisers have seen turnover increase in the past year, with the same percentage […]

1

Govt: No legislation needed for ‘advice’ vs ‘guidance’

A leaked memo has set out why the Government does not think the terms “advice” and “guidance” need to be set out in forthcoming legislation. Last week, the House of Lords debated the bill that will introduce a new public financial guidance body to merge existing services The Money Advice Service, The Pensions Advisory Service […]

9 October thumbnail

Johnson Fleming set to host webinar on auditing auto-enrolment schemes

With 23 auto-enrolment compliance notices issued by the Pensions Regulator, and an evolving legislative landscape meaning previously compliant schemes may now be in breach of regulation, now is the time to think about auditing your auto-enrolment scheme. Johnson Fleming is hosting a webinar on 9 October at 11:00 on how to audit your scheme to ensure compliance, avoid breaches and fines and overcome data issues.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. This is great news for trustees, scheme members, sponsoring employers and also for IFA firms.

    Just as nobody ever got fired for hiring Goldman Sachs, trustees could never really be questioned for hiring Mercer, AH or WTW who represent up to 80% of the IC advice market.

    Hopefully this brave step by the FCA will lead to much greater participation in this market by the wider IFA community as Trustees will be encouraged and have confidence in dealing with a greater number of regulated advice firms.

    Let’s see the PFS publish some guidance for members to help them understand the opportunity this represents.

  2. And how hard do firms such as PWC, Mercer or Saatchi & Saatchi have to compete for the commissions they regularly get from the FCA, which seem to be handed to them on a plate with nothing in the way of any sort of competitive tendering process?

Leave a comment