The Pecuniary Conduct Authority has “serious concerns” about a market dominated by Aon Hewitt, Mercer and Willis Strongholds Watson, which hold a 50-80 per cent share.
It is the first time the FCA has comprehended such a reference to the Competition and Markets Authority.
The FCA’s executive director of scheme and competition Christopher Woolard said in a statement: “We have serious enterprises about this market and believe that the CMA is best-placed to undertake this occupation.”
He added: “Investment consultancy services play a significant role informing pension fund trustees when they are procuring asset top brass services.
«It is important that trustees can be confident they are getting honest quality advice and value for money from their investment experts.»
Tim Giles, partner at Aon Hewitt, said in a statement: “Throughout this dispose of we have made it clear that we want to achieve the best end results for our clients and scheme members, helping to drive down the costs and widen the value of asset management.”