The U.K.'s Competition and Markets Authority announced changes to the investment consultancy and fiduciary management sectors.

The reforms come after an investigation launched in 2017 revealed various competition issues.

Pension trustees who want to delegate more than 20% of their scheme assets to a fiduciary manager will now have to run a competitive tender with a minimum of three firms, the Competition and Markets Authority, or CMA, said.

Additionally, trustees who have appointed a fiduciary manager without a tender will be given up to five years to put the service out to bid.

Fiduciary management firms will have to be transparent and clear about their fees and how they have performed for other clients using a standard approach.

The CMA also wants The Pensions Regulator to produce new guidance to help trustees with these services, and recommended that the U.K. government upgrades the regulatory scope of the Financial Conduct Authority and The Pensions Regulator to ensure better supervision of the sector.

The CMA will issue a draft for consultation on the topic in early 2019, before the new requirements are implemented later in the year.