Investment consultants market investigation
The CMA is investigating the supply and acquisition of investment consultancy and fiduciary management services in the UK.
‘Sunsetting’ of CMA Order as regards the obligations of pension scheme trustees
With effect from 1 October 2022, those provisions of the Investment Consultancy and Fiduciary Management Market Investigation Order 2019 (the Order ) which impose prohibitions and obligations on Pension Scheme Trustees, including in relation to compliance reporting, have ceased to be in force. That is on the basis that equivalent provisions have been brought into force, from that date, by The Occupational Pension Schemes (Governance and Registration) (Amendment) Regulations 2022.
- visit Article 1.4(a) of the investment consultants Order and paragraphs 12 and 13 of the Explanatory Note to the investment consultants Order.
For the avoidance of doubt, the provisions of the Order which impose prohibitions and obligations on Investment Consultancy Providers, Fiduciary Management Providers and IC-FM firms, including in relation to compliance reporting, continue in force.
Compliance statements
As a result of the coming into force of The Occupational Pension Schemes (Governance and Registration) (Amendment) Regulations 2022, Pension Scheme Trustees are no longer required to submit compliance statements to the CMA. The Pensions Regulator will communicate how compliance should be reported in due course.
Compliance statements from Investment Consultancy Providers, Fiduciary Management Providers and IC-FM firms under the Investment Consultancy and Fiduciary Management Market Investigation Order 2019 (the Order) should continue to be sent to the CMA at the following address:
Compliance statements which are submitted to the CMA, must be submitted annually by 7 January. A single compliance statement can cover more than one Part of the Order (in other words, the CMA does not require a separate compliance statement for each Part of the Order).
The table below explains which parts of the Order apply to each category of compliance reporting respondent.
| Part | Article | FMPs | IC-FMs | ICPs |
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| 3 | 3.2 to 3.5 and 3.7 | Yes | No | No |
| 4 | 5.1 to 7.3 | No | Yes | No |
| 5 | 8.1 to 9.3 | Yes | No | No |
| 6 | 10.4 | Yes | No | No |
| 8 | 13.1 to 13.4 | Yes | No | Yes |
Compliance statements should confirm the extent to which the relevant applicable Articles of the relevant Part or Parts of the Order that were in force during the reporting period have been complied with during that period.
Further details are set out in Articles 15 and 16 of the Order and paragraphs 102 to 110 of the Explanatory Note to the Order.
Final Order
The Investment Consultancy and Fiduciary Management Market Investigation Order 2019
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- Press release: Final step taken in CMA reform of investment consultants (10.6.19)
Responses to consultation on the Order
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Consultation on the draft Investment Consultancy and Fiduciary Management Market Investigation Order 2019
Representations should reach the CMA by 10am on Wednesday 13 March 2019.
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Remedies implementation
Timetable
Statutory deadline for implementing remedial action: 11.6.19
(25.1.19)
Phase 2
Timetable
Date of reference: 14.9.17
Statutory deadline: 13.3.19
Update 10 December 2018: The CMA will publish the final report of its market investigation into investment consultants and fiduciary managers on Wednesday 12 December.
Update 13 September 2018: Following consideration of the responses to the Provisional Decision Report, the CMA has revisited our administrative timetable. We have concluded that:
- while our statutory deadline is 13 March 2019, we should aim to publish the Final Report before the end of 2018
- the deadline for the receipt of all parties’ responses and submissions for consideration by the Inquiry Group ahead of reaching its final decision will be the end of October 2018
The revised Administrative Timetable is set out below:
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Contact
Email: investmentconsultants@cma.gov.uk
Final report
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- Press release: CMA sets out investment consultants reforms (12.12.18)
Mercer follow-up submission to response hearing
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Responses to the Market outcomes: updated results working paper
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Responses to the Consultation paper: Draft definitions of Investment Consultancy services and Fiduciary Management services for the purposes of potential remedies
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Consultation paper
2 November 2018: The CMA has today published a consultation paper on draft definitions of Investment Consultancy services and Fiduciary Management services for the purposes of potential remedies. To assist the CMA’s on-going consideration of potential remedies, the CMA invites interested parties to submit their comments on the draft definitions by 9 November 2018. We will continue to work towards publishing the Final Decision in December 2018.
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Confidentiality ring
Notice of the Competition and Markets Authority’s intention to operate a confidentiality ring following publication of revised analysis relating to comments received on the Provisional Decision Report.
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Working paper
25 October 2018: The CMA has today published a working paper on additional analysis we have carried out in response to the feedback we received on some of the data published. We have reviewed our analysis on market outcomes, taking this feedback into account, and are publishing our workings in this working paper for consultation. We will continue to work towards publishing the Final Decision in December 2018.
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Response Hearing Summaries
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Submissions following the provisional decision report
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Responses to the provisional decision report
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Provisional decision report
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- Overview of the provisional decision report (18.7.18)
- Press release: CMA proposes pension investment reforms (18.7.18)
Addendum to Provisional decision report
2 August 2018: The CMA has today published an addendum to its provisional decision report on the fiduciary management tendering figures used in paragraphs 12.32, 12.40 and in Table 8:
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Survey of pension scheme trustees: publication of IFF Research’s Report
29 March 2018: We are today publishing IFF Research’s report of the survey that the CMA commissioned to gather evidence on how pension scheme trustee boards use investment advisory and fiduciary management services and how they view these markets. As well as IFF’s report of the survey findings and accompanying data tables, we are publishing their technical appendix, which includes the questionnaire used for the survey.
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IFF Research data tables
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Confidentiality ring
Notice of the Competition and Markets Authority’s intention to include additional data and analysis into a confidentiality ring following publication of the Provisional Decision Report.
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Notice of the Competition and Markets Authority’s intention to operate a confidentiality ring following publication of the Provisional Decision Report.
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Notice of the Competition and Markets Authority’s intention to operate a confidentiality ring following publication of the working paper on Asset Manager Product Recommendations.
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Working papers
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Progress updates
Short update on the progress of the investment consultants market investigation.
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Evidence
The publication of the evidence of any party on the CMA’s webpages does not indicate in any way endorsement by the CMA of the views expressed in the evidence or acceptance of that evidence. Publication in this way is designed to assist public understanding of the issues.
Submission prior to the provisional decision report
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Responses to the Gains from engagement working paper
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Roundtables
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Responses to the Barriers to entry and expansion working paper
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Responses to the Competitive landscape & Barriers to entry and expansion working papers
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Response to the Competitive landscape, Barriers to entry and expansion & Financial performance and profitability working papers
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Responses to the Competitive landscape working paper
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Responses to the Financial performance and profitability working paper
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Responses to the Trustee engagement working paper
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Responses to the Asset manager product recommendations working paper
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Responses to the Supply of fiduciary management services by investment consultancy firms working paper
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Responses to the information on fees and quality working paper
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Environmental, Social and Governance (ESG) submissions:
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Submission following hearings
- - Possible conflicts of interest analyses (1.3.18)
Hearing summaries
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Responses to issues statement
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Initial submissions
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Research with pension scheme trustees: invitation to comment
16 October 2017: On 21 September, the CMA appointed IFF Research to survey trustees of UK occupational pension schemes as part of its investigation. The research will aim to gather evidence on how pension scheme trustees use investment advisory and fiduciary management services and how they view these markets.
We welcome comments on the proposed methodology and draft questionnaire by 9am on 20 October 2017.
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Issues statement
21 September 2017: The issues statement sets out the scope of the investigation. It outlines initial theories on what might be adversely affecting competition and potential remedies to address any adverse effects we may find. It doesn’t set out findings or conclusions.
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- Press release: CMA sets out scope of investment consultancy market investigation (21.9.17)
Market research agency appointment
21 September 2017: The CMA proposes to survey trustees of UK occupational pension schemes as part of its investigation and has now appointed market research agency IFF Research to conduct the survey on its behalf.
Inquiry group appointed
20 September 2017: The CMA appointed the inquiry group on 19 September 2017.
John Wotton (Inquiry Chair), Lesley Ainsworth, Bob Spedding and Tim Tutton.
Disclosure of interest
A number of members of the group have declared internally that they have investments in funds or investment vehicles administered as retail products by companies that provide fiduciary management services. It is also likely that those companies have business relationships with investment consultancies who are main parties to this investigation, but the members are not aware of these. We consider that these retail-side connections with potential parties in this investigation will not affect the ability of the members to perform their functions independently or impartially.
Terms of reference
14 September 2017: The FCA’s terms of reference for the CMA’s investigation can be found below.
Case opened
14 September 2017: The FCA has referred the supply and acquisition of investment consultancy services and fiduciary management services to and by institutional investors and employers in the UK to the CMA for a market investigation.
- Press release: CMA launches market investigation into investment consultants (14.9.17)
Phase 1
In November 2016, the Financial Conduct Authority (FCA) published the interim report on its Asset Management Market Study. As part of this interim report the FCA proposed that the market for investment consultancy services should be referred to the CMA for a market investigation.
On 20 February 2017, the 3 largest investment consultants made a joint offer of undertakings in lieu of a reference (UILs). On 28 June 2017, the FCA wrote to the 3 firms (PDF, 317 KB) to explain why, after careful review, it reached the provisional view to reject the UILs.
In June 2017, the FCA published the final report on its Asset Management Market Study. Having considered responses to the interim report the FCA remained of the view that there were reasonable grounds for suspecting that features of the investment consultancy market were preventing, restricting or distorting competition. As part of the final report, the FCA proposed rejecting the UILs and sought views from parties before making its final decision. The public consultation on these proposals closed on 26 July 2017.
On 14 September 2017, the FCA published its decision to refer the supply and acquisition of investment consultancy services and fiduciary management services to institutional investors and employers in the UK to the CMA for a market investigation.
Please see the FCA’s Asset management market study case page for more information.
Updates to this page
Published 14 September 2017Last updated 3 October 2022 + show all updates
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‘Sunsetting’ of CMA Order as regards the obligations of pension scheme trustees and update to compliance statements published.
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Update on the process and timing for compliance statements published.
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The following documents have been published: the final Order, the notice of making the final Order, the explanatory note, the summary of responses to the consultation, and the responses to the consultation.
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Consultation on the draft Investment Consultancy and Fiduciary Management Market Investigation Order 2019.
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Final report published.
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Response to consultation paper published.
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Responses to consultation paper and market outcome published.
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Summary of Trustee roundtable discussion and consultation paper published.
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Updated working paper, notice of confidentiality ring and hearing response summaries published.
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Submission following the provisional decision report published.
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Responses to the provisional decision report and revised administrative timetable published.
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Final notice of intention and undertakings for confidentiality ring.
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Provisional decision report, appendices and link to press release published.
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Timetable updated with publication date for the provisional decision report.
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Final confidentiality ring documents published.
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Submissions prior to the provisional decision report published.
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Response to the Gains from engagement working paper and submission prior to the provisional decision report published.
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Responses to the Gains from engagement working paper published.
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Roundtable discussions published.
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Responses to working papers published.
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Gains from engagement working paper published.
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Responses to the trustee engagement working paper published.
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Response letters to working paper published.
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Working papers published.
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Trustee engagement working paper published.
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Responses to working paper and asset management summary published under evidence.
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IFF research reports, survey findings and data tables published.
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Asset manager product recommendations published.
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CMA’s intention to operate a confidentiality ring following publication of the working paper on Asset Manager Product Recommendations published.
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Working paper and ESG submissions published.
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Progress update and timetable published.
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Further hearing summaries published.
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Hearing summaries published.
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Hearing summaries published.
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Hearing summaries and response to issues statement published.
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Hearing summaries published.
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Responses to issues statement published.
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Responses to issues statement published (under ‘Evidence’).
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Invitation to comment on proposed methodology and draft questionnaire for research with pension scheme trustees.
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Initial submission published.
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Full administrative timetable published.
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Issues statement published and market research agency appointed.
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Inquiry group appointments added.
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First published.