The Government is planning hard hitting review of the fund management industry despite glossing over it in the Budget speech.
The Treasury want to know why institutional investors, who control 45 per cent of the quoted equity market, invest so little in the British economy's grassroots.
Gordon Brown announced of the review between statements on British venture capital firms, leading some fund managers and consultants to believe its focus would be narrow.
But Gartmore Investment Management executive chairman Paul Myners who is heading it is to be given wide powers.
He is likely to question the competence of pension fund trustees, the domination of a handful of investment consultancies and the vested interests of fund managers.