Commenting on the FCA’s Asset Management Study issued on Wednesday 28th June, John Walbaum, Head of Investment Consulting at Hymans Robertson, said: 

“Anything that improves outcomes should be welcomed. The proposed remedies around pooling to achieve economies of scale, particularly for smaller schemes, are sensible. We’re pleased the FCA recognises there are different ways to pool assets, and that it’s not necessary to make pooling mandatory for DB or DC schemes.

“We’re pleased that the FCA is keen to consult more broadly on the Undertakings in Lieu put forward by the three largest investment consultants.  While we provide only investment advisory services and not fiduciary management, we do provide fiduciary oversight and think it is right for the FCA to seek wider input from other interested partied in relation to the issue of firms carrying out both activities. What is also clear is that the structural separation of the advice and asset management businesses within the fiduciary model is not off the table.

“While the FCA is consulting further, there is a sense of inevitably that the investment consulting market will come within the FCA’s regulatory perimeter.  We have no difficulty with that change, provided it does not dilute innovation and it is clear where the line between regulated advice and actuarial advice is drawn.”