Yahoo Finance Call to overhaul pension regulator after Carillion and British Steel pension fiascos
The chairman of the work and pensions select committee has called for a radical overhaul of the Pensions Regulator ahead of a grilling of its bosses over the growing Carillion and British Steel pension scandals.
Frank Field said he was angered by the regulator’s failure to police Carillion’s spiralling £990m pension deficit and mis-selling of savings products to British Steel pensioners.
“We need to look seriously at the whole state of the operation, how its skills match the task and the legal basis of the regulator because it’s quite clear from our inquiries on British Steel and Carillion that there are failings,” Mr Field said.
“They should form a more effective agency or agencies to defend pensioners rather than industries.”
He also questioned the reappointment of Mark Boyle as chairman of the body without open competition shortly before Carillion’s collapse: “It shows the lack of imagination of the May government and the urgency of reform.”
The Carillion case had made him think the big four accountants needed to be broken up, he added.
“It is likely we will have to look at how we might break up these large conglomerates.”
The Pensions Regulator and Carillion’s auditor KPMG will give evidence this week.
A spokesman for TPR said: “Our job is to protect pension savers and this is reflected in the tougher approach we are taking to regulation.”
