Guidance

The Investment Consultancy and Fiduciary Management Market Investigation Order 2019

An order which introduces a range of reforms to the investment consultancy and fiduciary management sector.

• From: Competition and Markets Authority
• Published: 10 June 2019
• Last updated: 31 March 2021 — See all updates

Documents

The Investment Consultancy and Fiduciary Management Market Investigation Order 2019

PDF, 230 KB, 24 pages

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Details

This remedy resulted from the CMA’s Investment Consultants Market Investigation Final Report (PDF, 3.11MB).

The order was made under the market investigations provisions of the Enterprise Act 2002. This Order introduces a range of reforms to the investment consultancy and fiduciary management sector after the CMA found competition problems.

Compliance reports

This Order introduces a range of reforms to the investment consultancy and fiduciary management sector after the CMA found competition problems. It introduces the following obligations:

• Pension scheme trustees who wish to delegate investment decisions for 20% or more of their scheme assets must run a competitive tender when first purchasing fiduciary management services, meaning they must ask at least 3 unrelated fiduciary managers to bid for their work and provide successful fiduciary management providers with written confirmation that they were selected as a result of a competitive tender process.

• Pension scheme trustees who had already appointed a fiduciary manager for 20% or more of their scheme assets without a tender prior to the Order being made must put the service out to tender within 5 years of their agreement with that fiduciary manager beginning.

• Fiduciary management firms must provide potential new customers with itemised information on their fees and performance, so they can compare service providers with ease. They must also provide more detailed, disaggregated information on their fees to their existing clients.

• As applicable, pension scheme trustees, investment consultancy and fiduciary management firms, subject to the provisions of the Order must submit compliance statements in relation to these provisions to the CMA by 7 January each year.

Submitting the compliance report

When submitting a compliance report it is important for pension scheme trustees, investment consultancy and fiduciary management firms to note that they are responsible for their own compliance. As applicable, all must provide a compliance statement alongside a certificate under Article 16 of the Order to certify that the compliance statement has been prepared in accordance with the requirements of the Order and that the entity has complied in all material respects with the requirements of the Order and reasonably expects to continue to do so.

Compliance reports in relation to Part 3 of the Order are required by pension scheme trustees even if a fiduciary management provider has not been used (in this case you are compliant because you don’t use fiduciary management). Compliance statements and certificates are to be sent to [email protected] with the name of the business in the subject box. The CMA accepts electronic signatures. We ask you to please accept the inbox’s automatic response as a confirmation of receipt.

Further information

More guidance can be found on the Investment Consultancy and Fiduciary Management Market Investigation Order 2019 page.

If you have any queries, or if you need to report a breach, please contact the CMA on: [email protected]

Published 10 June 2019
Last updated 31 March 2021 + show all updates

1. 31 March 2021

   New information on submitting compliance reports added under the details section.

2. 10 June 2019

   First published.