More than eight in ten pension investment managers and trustees would like to use a checklist provided by The Pensions Regulator (TPR) during the tender process for fiduciary managers and consultants.
30 AUGUST 2018 | CHRIS SEEKINGS
That is according to research by the Pensions and Lifetime Savings Association (PLSA), and comes in response to reforms proposed by the Competition and Markets Authority (CMA) last month.
These recommended that trustees selecting their first fiduciary manager run a mandatory competitive tender, and that the role of existing managers be retendered within five years.
The PLSA said it supported the proposals, and called for greater guidance from the TPR after finding most its members also want the regulator to provide best practice case studies.
In addition, the majority said they would like TPR to supply templates for request for proposals documents, and guidance on how to interpret supplier information.
"These would prove invaluable for schemes and ensure best practice across the industry to a set standard," PLSA defined benefit and investment policy lead, Caroline Escott, said.
"With millions of savers reliant on pensions to fund their retirement, it's crucial we have an investment market that works efficiently and transparently at every stage."
The PLSA research found that, despite the CMA's recommendations, three-quarters of pension schemes have not run a tendering process for fiduciary management in the last five years.
More than half have not run a tendering process for an investment consultant in the same period.
The PLSA said the CMA reforms should have a positive impact, depending on design and implementation, but that they must remain flexible to allow for future market developments.
Escott added: "The CMA's report is not a one-stop-shop to fix this market, but we believe it came to a number of sensible conclusions and its scrutiny of the sector has been important."