The Financial Conduct Authority said on Friday it has reasons to worry about the sector of investment advisory services, which previously it had requested the investigation of by UK competition regulator.
British markets authority said it was unprecedented event that it has referred to the Competition and Markets Authority, and the idea was to turn around the sector of asset management by taking various measures including the mentioned one.
The FCA’s Christopher Woolard stated that they are really worried about this market and they view the CMA as best positioned to carry out such work.
The three companies - Willis Towers Watson, Aon and Mercer hold the bulk of the market, providing retirement, charity and risk consultations. All three together occupy market’s 50-80%, according to the FCA’s data.
Retirement trustees were using investment advisory services a lot, but they couldn’t thoroughly assess the level of their advice or make comparisons between companies, as markets authority pointed out. It also expressed concerns over obstacles impeding the way to taking over of some of market share by novice consultants, and that vertical integration was the reason for conflict of interests.