The government has launched a consultation seeking opinions on changing regulations regarding pension schemes and fiduciary management (FM), in response to a final order from the Competition and Markets Authority (CMA).

It is looking for views on altering regulations to integrate the CMA’s final order, which would require trustees of workplace pension schemes to carry out a tender process for (FM) services.

The consultation also questions respondents on whether trustees should have to set objectives for their investment consultants.

If the proposals are met with approval, the government is suggesting allowing The Pensions Regulator to oversee the new requirements.

The consultation is aimed at trustees, providers, scheme members and beneficiaries, and “any other interested stakeholders”.

In June 2019, the CMA published its final remedies to help pension trustees to “make better decisions”, which suggested legislating for pension trustees to have to run a tender when selecting a fiduciary manager for more than 20 per cent of their assets.

After the CMA published its suggestions, the government said that it “welcomed” the final report.

In a letter to CMA chair, Andrew Tyrie, the government stated: “The government recognises the substantial influence that these services can have on pension scheme outcomes, affecting up to half of UK households.

“Ensuring value for money from these services is critical for scheme members, given the long-term horizon over which pension scheme investments are made.

“We therefore agree with the proposed remedies contained within the report.”

The consultation is open until 11pm on 2 September 2019.

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