The world’s biggest investment consultants plan to fight against a full-blown competition probe in the UK after the country’s financial watchdog suggested their proposed measures to reform the GB£1.6 trillion (US 1.8t) sector did not go far enough, reports Financial Times.
On Wednesday, the Financial Conduct Authority said it would provisionally reject proposals put forward by Aon Hewitt, Willis Towers Watson and Mercer, which collectively control up to 71% of investment consultancy revenues in the UK.
The regulator is now consulting the wider industry on the trio’s suggested reforms, which include proposals for mandatory tenders and greater information on manager performance. It will make a final decision on whether to refer the influential sector to the Competition and Markets Authority, the antitrust regulator, in September.
The three largest investment consultants, which advise pensions across the world on how to invest the savings of millions of people, plan to use the next month to convince the UK regulator and rival investment consultants to back their proposals, known as UILs, or undertakings in lieu.
Full Content: The Financial Times