UK - FSA chief executive Hector Sants has said pension funds must shoulder some of the blame for the financial crisis and will play a crucial role in any recovery.
He said: "I have questioned whether, if there had been more effective and collective shareholder intervention whether the financial crisis we are witnessing today would be as severe"
He also said investors had, in future, to make sure they understood what they were investing in.
"You have a major role in addressing the issues arising from this financial crisis," he told delegates.
"As owners we would encourage you to focus on the issues of governance, risk management, business strategy, and the issue of compensation." He said that in order to do that pension funds would have to engage more actively with senior management and non executive directors, but that ultimately funds had to organise themselves more effectively for collective action.
One audience member described Sants suggestion that pension funds should be at least partly blamed for the financial crisis as "staggering" and asked Sants whether the regulator should have done a better job in ensuring the information coming from companies was of a better quality.
Sants agreed that more could have been done in this area, and said the FSA had already accepted it had been partially at fault. However he said there had been a "laziness in the system in the use of credit ratings agencies" suggesting that investors had become too reliant on them.
National Association of Pension Funds chairman Chris Hitchen, commented: "It is not our job to manage companies. We can only set a framework about what we expect from the companies we own."
He added: "In the future executives of companies will have to wait longer for remuneration, which will bring them in closer alignment with with the owners."
Coats' pension scheme members are not entitled to annual increases of 5%, the High Court has ruled in a rare instance of a court overturning a decision of The Pensions Ombudsman.
Trustees of the Airways Pension Scheme (APS) have been granted permission to use more than £1m of scheme assets to fund an appeal over discretionary increases.
Chancellor Philip Hammond is being pressed to tackle the impact of pensions allowances on the NHS' ability to recruit and retain staff.