In our response to the FCA study, we support rejection of the undertakings in lieu and a referral of investment consultants to the Competition & Markets Authority. However, remedies in addition to those contemplated in the Study are required to ensure the market for services to defined benefit pension schemes functions effectively for buyers as well as sellers.
In our Asset Management Market Study, Interim Report, Response to Consultation from Cardano Risk Management Limited (“Interim Response”), we focussed on three key topics related to provision of services to the defined benefit pension segment of the market: duty of care, transparency and a level playing field.
We were pleased that the conclusions of the Study were in line with much of our thinking. The implementation of the remedies will be a positive step forward for the industry.
Nevertheless, these remedies don’t go far enough. In our view, they are necessary, but not sufficient, to create a market that functions well for defined benefit pension schemes.
Click here to read our full response.