Competition is not working effectively, Trustees deserve better information, XPS say proposed mandatory tendering for fiduciary management does not go far enough.
The CMA review highlights that trustees would get a better deal in investment consulting and fiduciary management if they were more engaged and were provided with better information on performance and fees. We very much welcome these recommendations. It is now time for trustees to look outside of the Big 3 providers to get a better quality of service they deserve.
The CMA has strong concerns over fiduciary management and how pension funds have been steered towards it. The evidence of this is very significant and we see it every day, however much the fiduciary managers deny it publically. Requiring a full tender at the initial appointment of the fiduciary manager is a step forward but is only really effective if independent advice is sought which is not part of the CMAs remedies.