The Competition and Markets Authority has outlined the scope of its investigation into the UK's investment consultancy sector — which advises on £1.6tn in assets — after it was referred to the watchdog by the country's finance regulator last week.

Following its wide-ranging review of the asset management industry, the Financial Conduct Authority raised concerns about conflicts of interest and opaque fees among investment consultants, which provide advice to pension schemes. On September 14, it said it wanted the CMA to launch a full-blown inquiry into the sector's practices.