Crackdown on pension advice

THE largest investment consultants to the UK’s £1.6trillion pension fund industry face a crackdown – but have escaped a forced break-up.

The Competition and Markets Authority has outlined proposals to address concerns over competition in the sector dominated by Mercer, Willis Towers Watson and Aon.

It has been probing the industry since September after the Financial Conduct Authority watchdog raised concerns.

But yesterday it stopped short of demanding a break-up of the big three, and instead wants new rules, including compulsory competitive tenders for pension trustees appointing their first fiduciary manager. Those which have already made appointments without doing so could have to put the contract out to tender within five years.