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The Financial Conduct Authority (FCA) announced its decision to refer to the Competition and Markets Authority (CMA) for an in-depth market investigation on 14 September 2017.

As set out in the FCA’s terms of reference, the investigation covers investment consultancy services, which provide advice to institutional investors (mainly pension funds) and employers on their pension schemes; and fiduciary management services, where the provider makes and implements decisions for the investor (for example, to select a fund in which to invest).

The CMA is now carrying out a thorough and independent investigation to see if there are any market features which prevent, restrict or distort competition. If it does find competition concerns, the CMA will decide whether and – if so – what action is needed to resolve them.

The issues statement sets out a structure for the investigation, outlining potential issues and possible remedies to put in place if competition problems are found. We have grouped these in the following areas:

• whether difficulties in customers’ ability to assess, compare and switch investment consultants mean investment consultants have little incentive to compete for customers
• whether conflicts of interest on the part of investment consultants reduce the quality and/or value for money of services provided to customers
• whether barriers to entry and expansion mean there are fewer challengers to put pressure on the established investment consultants to be competitive – which leads to worse outcomes for customers

The above are matters that we will be testing in our investigation. The purpose of the issues statement is to help those submitting evidence to the CMA to focus on the issues that we will investigate. We will welcome views on whether the correct issues have been identified to date and whether other issues should also be investigated, as well as views on potential remedies.

The CMA has appointed an investigation group, which will act as the decision maker in the case. This will be chaired by John Wotton, one of the CMA’s designated inquiry chairs. The other panel members are Lesley Ainsworth, Bob Spedding and Tim Tutton. All the appointees are chosen from the CMA’s expert independent panel members, who come from a variety of backgrounds, including economics, law, accountancy and business.

John Wotton, Chair of the Investigation Group, said:

It is extremely important that the investment consultancy sector works effectively for its clients, which include many of the UK’s biggest pension funds, and we want to ensure we are looking at the right issues. That is why we are urging people to get in touch if they have any evidence to share or views about whether these are the correct areas for us to be investigating.

All information relating to the investigation will be available on the case page. Submissions in response to the issues statement are invited in writing by Thursday 12 October 2017 either by email to investmentconsultants@cma.gsi.gov.uk or to:

Notes for editors

1. The CMA is the UK’s primary competition and consumer authority. It is an independent non-ministerial government department with responsibility for carrying out investigations into mergers, markets and the regulated industries and enforcing competition and consumer law. It has functions under the Enterprise Act 2002, as amended by the Enterprise and Regulatory Reform Act 2013.

2. In its investigation, the CMA is required to decide whether ‘any feature, or combination of features, of each relevant market prevents, restricts or distorts competition in connection with the supply or acquisition of any goods or services in the United Kingdom or a part of the United Kingdom’. If so, then there is an ‘adverse effect on competition’ and the CMA will also consider whether there is a resulting detrimental effect on customers such as higher prices, lower quality or less choice of goods or services. The CMA will then decide whether it should put in place remedies (or recommend that other bodies should do so) to tackle the adverse effect on competition or any detrimental effect on customers so far as it has resulted from, or may be expected to result from, that adverse effect on competition, and if so, what action should be taken. If the CMA finds that there is no ‘adverse effect on competition’, the question of remedies will not arise.

3. Enquiries should be directed to the press@cma.gsi.gov.uk, on 020 3738 6191.

4. For more information see the CMA’s homepage, or follow us on Twitter @CMAgovuk, Flickr and LinkedIn. Sign up to our email alerts to receive updates on the markets cases.

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Summary At around 21:30 hrs on 6 February 2017, at Bank Station on the Docklands Light Railway, part of a coat worn by a passenger on the platform became trapped in the closing door of a train. The passenger was unable to release her coat from the clo… read more

This short survey is being run via YouGov to gather more detailed feedback from suppliers on the issues of forecasting, promotions and delay in payments. This can be completed anonymously if you wish, and all information received will be treated in co… read more

We are exploring different ways and times in which you can contact us. At present our helplines are open Monday to Friday from 9am to 5pm. The survey will help us to find out if providers would like us to extend these hours or find other ways of commu… read more

Twenty-one FTSE 100 companies have already signed up so far, including Marks & Spencer, BT and Royal Mail.

This week, construction recruitment specialist TBT Recruitment became the 5,000th organisation to become Disability Confident, pledging their commitment to attract, recruit and retain disabled workers.

This major milestone in the take up of the new scheme coincides with The Guinness Partnership becoming the 50th organisation to achieve the status of Disability Confident Leader.

The housing association has joined other employers in making a commitment to encourage and support other businesses in their network to improve support for disabled employees.

The Minister for Disabled People, Work and Health, Penny Mordaunt, says:

A fantastic range of employers from small start-ups to influential businesses like The Guinness Partnership and TBT Recruitment are making a public commitment to improve opportunities for disabled people.

If they can do it, every one of the FTSE 100 companies can take the first step by signing up to be Disability Confident too.

Disabled people make up a significant proportion of the potential workforce, and employers must ensure they don’t miss out on some of the best talent in their community.

I urge our country’s top businesses to use their power and influence to set the agenda on disability employment for companies everywhere.

Managing Director of TBT Recruitment, Scott Jeffrey, says:

We’re delighted to be the 5,000th organisation to sign up as Disability Confident. Being part of the scheme supports our commitment to providing qualified candidates from a diverse range of backgrounds to construction, rail and highways projects all over the UK.

Almost a fifth of the working age population is disabled, and the vast majority of these people will develop their condition or impairment during their working life.

Over the last four years almost 600,000 disabled people have entered the workforce. Further progress is being made through increasing the number of Disability Employment Advisers in Jobcentre Plus centres and raising awareness of programmes like Disability Confident and Access to Work.

The Disability Confident scheme, launched in November 2016, provides employers with the skills, examples and confidence they need to recruit, retain and develop disabled employees.

The scheme was developed with employers, disability charities, and disabled people.

FTSE 100 companies will only be eligible to sign up to the scheme if they are British based and employ staff.

The scheme has 3 levels:

• Disability Confident Committed
• Disability Confident Employer
• Disability Confident Leader

At each level employers commit to taking actions that will make a real difference to disabled employment.

To become a Disability Confident Leader, organisations must act as a champion for the scheme within their local and business communities. To reach this level organisations must also have their self-assessment validated from outside their business.

The Guinness Partnership is one of England’s largest affordable housing and care providers. They manage 65,000 homes for more than 135,000 customers.

TBT Recruitment are an experienced supplier of highly trained labour to the construction, rail and highways sectors, nationwide.

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