For you Tommy zee war is over!
So the investment consultants are to be marched off to Stalug Luft CMA, for prolonged interrogation and indefinite detainment.
Happily I have no pretentions to be an investment consultant and so can stand by the road as I see them – hands on heads – gloomily trudge away.
Not a moment too soon. I am frankly happy reading the FCA’s determination to make a market investigation review to the CMA re; Investment Consultants.
This review is based on feedback to the FCA which resulted in the Asset Management Market study; especially
The tone of the Final Decision is uncompromising and frankly belligerent. It marks a turning point in the balance of power between institutional investment (largely self-regulated) and the rest of the advisory world (largely regulated).
No longer will the big three consultants – Aon, Mercer and WTW be able to laud it over their clients, their competition and the Regulator. The days of our being subject to their overblown arrogance are coming to an end. Judging by the tens of thousands of readers of “Same old Watsons- taking the p**s“, I am not alone in feeling this way.
These big three , who between them control 60% of the market , thought they could speak for all investment consultants. They were wrong. The smaller consultants, who to my mind bring value , innovation and common sense to their customers, distanced themselves from the Undertaking in Lieu. The tide has gone out and the big three are left standing naked.
This is a good day for Transparency (well done Andy), it is a good day for the FCA, it is a good day for the small investment consultancies, but most of all it is a good day for the clients of those investment consultants who have not been getting value for money.