PLSA Welcomes New CMA Working Paper On Trustee Engagement

Editorial & Advertiser disclosure

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Top Stories

Posted By Gbaf News

Posted on April 13, 2018

PLSA Welcomes New CMA Working Paper On Trustee Engagement

The Pensions and Lifetime Savings Association (PLSA) today (Thursday) commented on the Competition and Markets Authority’s (CMA) latest working paper on trustee engagement.

Responding to the working paper, Caroline Escott, Policy Lead: Investment and DB, Pensions and Lifetime Savings Association, commented:

“We welcome the CMA’s publication of a paper on trustee engagement in the investment consultancy sector. For the institutional investment advice sector to work well, it is vital that trustees actively engage in the process of appointing, monitoring and scrutinising their investment consultants and fiduciary managers. A key requirement in order to do so is a transparent and well-functioning market.

“The CMA’s emerging findings echo the analysis both of the PLSA (in our Good Governance report) and The Pensions Regulator (TPR) regarding the variation of governance standards across UK schemes. It is important that schemes have the governance capacity and investment understanding necessary to engage effectively on what can be very complex issues and decisions. This is why we have supported initiatives, such as TPR’s 21st Century Trustee programme, to boost governance standards.

“The CMA’s work is also in line with findings from the PLSA and the FCA’s Asset Management Market Study that showed that smaller schemes can struggle to leverage economies of scale and attract the quality of skills needed to operate and invest efficiently. This means such schemes can also find it harder to navigate the highly intermediated nature of the UK investment market.

“We look forward to working with our members to engage further with the CMA on its analysis and potential remedies but would urge the CMA to think carefully about how any further regulation or guidance for trustees is designed. The guidance space is currently crowded and the increasing compliance burden runs the risk of potentially leading to a more risk-averse and compliance-led trustee approach which could in turn impact upon trustees’ capacity for in-depth assessment of the value they receive from their service providers.”

Recommended for you