Changes in fiduciary management
The Competition and Markets Authority (CMA) has now set out final requirements for occupational pension schemes using investment consultancy services or with fiduciary management mandates.
A legally-binding order was published on 10 June 2019, effective from 10 December 2019, with the aim of improving governance and competition.
Requirements for fiduciary management
Amongst other things, requirements include:
- Mandatory competitive tendering when first purchasing fiduciary management services (when 20% or more of a scheme’s assets are managed by a fiduciary).
- Schemes which appointed a fiduciary manager without a competitive tender will need to put the service out to tender within five years of the date of appointment (or by 10 June 2021 if this is later).
- Fiduciary management firms must provide existing and potential clients with clear information on fees and performance.
Keeping you informed
To help you respond to these requirements, we’ll be publishing a series of articles over the coming months covering:
- What should you be looking out for when you re-tender?
- The importance of understanding value for money in your fiduciary management arrangement.
- When does fiduciary management make sense?
- How can the volatile markets affect your fiduciary management arrangement?
The first one is coming soon - please keep a look out!
Video
But first...
You can now watch a recent Fiduciary Management Masterclass hosted by Asset TV where our Head of Investments, Anthony Ellis, joined BMO Global Asset Management, River and Mercantile Solutions and Schroders to discuss the changes happening in this sector.
Please note: you’ll need to log in using your LinkedIn details to watch the full video.
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