A number of concerns about investment consultancy and fiduciary management services have prompted the referral. These include:
- Pension trustees relying heavily on investment consultants but having limited ability to assess the quality of their advice or easily compare and switch between services.
- Relatively high levels of concentration and relatively stable market shares with the largest three firms together dominating between 50-80% of the market.
- Barriers to expansion that have restricted smaller, newer consultants from developing their business.
- Vertically integrated business models creating conflicts of interest.
Following an earlier provisional decision to refer the case to the CMA, the three largest firms in the market (Aon Hewitt, Mercer and Willis Towers Watson) offered up a package of undertakings to address these failings. The FCA was not persuaded, however.