Pensions minister Steve Webb has ruled out merging the roles of The Pensions Regulator and the FSA due to concerns that further regulatory upheaval could create uncertainty.
The Government has come under growing pressure from some in the industry, including the National Association of Pension Funds, to combine the FSA and TPR to prevent any overlap in their regulatory duties.
In July 2012, the National Audit Office published a report into the regulation of defined contribution pension schemes. In it, the NAO criticised the lack of co-ordination between the two regulators.
Following publication of the report, Hargreaves Lansdown head of pensions research Tom McPhail said there was a “burgeoning case” for merging the regulatory activities of the FSA and TPR.
Addressing the work andpensions select committee last week, Webb said: “At a time of massive turmoil the last thing we want is another regulatory shake-up.
“There is also a risk that if The Pensions Regulator became part of the [new] Financial Conduct Authority, the organisation whichfocuses on employers might get swallowed up and the TPR’s work might become a lower priority.
“At the moment I just cannot see the gain in doing it and I would need a lot of convincing to change my view.”
Informed Choice managing director Martin Bamford says: “This is good news because the last thing anyone wants is more regulatory uncertainty.”