The Inland Revenue is cracking down on loanbacks by bringing in tough new guidelines which must be met before life offices can lend to firms.
Loanbacks allow clients to take out loans using their pension policy as security.
The Revenue says it will start policing loanbacks by forcing life offices to prove a loan is judicious from December 1999.
Currently a life office can lend money to an employer without getting the process rubber-stamped by Revenue subsidiary Pension Schemes Office.
A Revenue spokesman says: "We will look at the situation at the time the loanback is made rather than later. This will ensure customers are financially healthy and there will be no problems with the loan."