July 1 (Reuters) - Pension consultants in the United Kingdom should be regulated to rein in the power of the three dominant investment advisory firms, the Financial Times reported, citing a report by Britain's Law Commission.
In a report, the commission raised concerns that the largest consultants, Towers Watson, Mercer and Aon Hewitt, had too much of a say in determining how pension funds invest money saved by their members, the paper said.
"The lack of regulation of investment consultants does appear anomalous, and we would ask that the government actively monitor this area," the FT quoted the independent body as saying. (on.ft.com/1mf2d82)
The report also cautioned that pension funds could receive similar advice on pension schemes from the three dominant firms, the daily said.
An executive at Towers Watson told the FT that the firm would welcome regulation of the industry if it did not result in higher costs for investors or decrease competition by raising entry barriers.
However, the Financial Times said Mercer was opposed to regulation of investment consultants.
Representatives of these three companies could not be reached immediately by Reuters for comment. (Reporting by Esha Vaish in Bangalore; Editing by Jan Paschal)