July 1 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
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
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)