BVCA warns anti-avoidance proposals will reduce member security

The trade body’s response to the government’s consultation on extending The Pensions Regulator’s powers said the proposals had already stopped three separate UK based private equity deals – and said further deals had been aborted by foreign investors who were cautious of the regulator’s threats of contribution notices.

And it warned the new rules could end up reducing member security.

BVCA chief executive Simon Walker said: "We believe that, far from benefiting the Pension Protection Fund and pension scheme members, the proposals will act as a deterrent to new investment, from private equity and elsewhere.

"This may have the unintended consequence of actually increasing the risk to members and calls of the PPF."

Walker said the BVCA had seen no evidence that warranted the additional powers.

He added: "The argument used during the consultation process – that a freight train is coming down the track and the government must legislate to stop it – is in our view fallacious.

"Pension schemes already have three levels of protection – trustees, their statutory advisors and the regulator."