UK Pension Association Champions Single Regulatory Body

(May 11, 2011) — The National Association of Pension Funds (NAPF) is calling for a single regulatory body for UK pension schemes.

According to the UK-based association, the Financial Services Authority’s responsibilities for group personal pensions and stakeholder pensions should transfer to The Pensions Regulator (TPR).

The result of the transfer would be a simplified regulatory environment, according to the NAPF. Furthermore, the NAPF asserted that the regulator should urge the establishment and development of super trusts to promote scale and good governance to workplace DC pensions.

While the UK’s NAPF is currently urging added authority on the part of TPR, the association has also criticized the industry watchdog, noting that TPR should be more accountable to those it regulates. In December, a survey by NAPF showed that a large majority of respondents believed the industry watchdog should be more accountable to trustees.

“We think the Regulator needs to engage more with those it regulates,” NAPF Chief Executive Joanne Segars said in a statement. “It should take a less prescriptive approach to regulation to ensure good quality occupational pension schemes thrive,” she said, adding that the findings send a strong message to the government about TPR’s accountability.

The NAPF’s December survey contrasted with an earlier report from January 2009 by the Better Regulation Executive and National Audit Office, which found the regulator’s stakeholders regard TPR as a “transparent and listening” organization. Yet, NAPF’s Segars stated — following the release of the NAPF’s study — that while she believed the regulator was successful in certain areas, the firm should take a broader, longer-term view.