The FCA has written to a number pension firms over concerns their pension distribution deals infringe competition law.
An FCA statement published today confirms the regulator has found a number of unnamed firms are engaging in distribution agreements that operate without any competition compliance protocol to prevent the disclosure of commercially sensitive information.
The regulator sent letters to a number of firms putting them on notice of potential breaches of a similar type as the Competition and Markets Authority’s (CMA) warning letters. The letters, which are being issued by the FCA for the first time under its competition powers and which result from its retirement income market study, place a responsibility on the recipients to confirm what remedial action they plan to take, and by when. The FCA says the firms involved have undertaken a number of initiatives to strengthen competition compliance including reviewing and self-assessing the arrangements, reviewing and updating their competition compliance protocols and ensuring that all key staff receive competition law training.
A statement from the FCA says: “We would encourage other firms to review their distribution and marketing arrangements to ensure that they comply with competition law. In particular, when engaging with actual or potential competitors, firms should take care not to disclose any commercially sensitive information.”