XPS Pensions Group has launched a competitive tendering support service for trustees, following the Competitions and Markets Authority’s (CMA) final report on investment consulting and fiduciary management.

In June 2019, the CMA published its order, which implements the remedies set out in its final report.

These stated that trustees appointing a fiduciary manager for the first time for more than 20 per cent of assets are required to run a competitive tender process.

Furthermore, trustees who have already appointed a fiduciary manager for more than 20 per cent of scheme assets without running a competitive tender process, are required to do so within 5 years from the original appointment, or by 9 June 2021.

XPS hopes that its new support service will help trustees through the initial selection process or the mandatory re-tendering process in a stream-lined and pragmatic manner.

Commenting on the launch, XPS head of fiduciary management oversight, André Kerr, said: “We have spoken with a number of schemes that already use a fiduciary management arrangement and understand that the benefits to them of going through a re-tendering exercise will differ greatly, depending on their circumstances.

“Put simply, we believe that the approach that each scheme takes when undertaking a review of their existing fiduciary arrangement should be proportionate to their needs.

"Schemes will generally fall into one of two categories, either a streamlined review with a commercial terms refresh, or a full suitability review across all selection criteria.

“Either way, the benefits of complying with the order can result in greater efficiencies overall for schemes.”

XPS said that both options within its support system will ensure that trustees retain or appoint the right fiduciary manager for their scheme’s needs.

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