CMA has announced an investigation into the supply and acquisition of investment consultancy and fiduciary management services following a referral by FCA. FCA has decided to reject the undertakings in lieu offered to its by the three largest investment consultants, as it believes the market will benefit from an in-depth review. There were also concerns from the market that the proposed undertakings did not go far enough in addressing some of FCA’s concerns. The key concern noted was vertically integrated business models and the conflicts of interest present in them. FCA also noted the proposed package had covered only just over half of the market in any case.
CMA will shortly publish an issues statement setting out the scope of its investigation, which will conclude in March 2019.