Boss of pensions giant backs concerns over regulators

The chief executive of pensions and life insurance giant Phoenix has backed a warning that Britain’s regulatory approach could mean the country is seen as ‘closed for business’. 

Andy Briggs said ‘there is definitely a risk of that’ when asked if he agreed with video games maker Activision Blizzard after the UK competition watchdog blocked its takeover by Microsoft. 

Briggs is involved in talks with a separate arm of the UK regulatory system to try to ease rules to allow more of Britain’s £3.4trillion of pension wealth to be usefully invested. 

He told the Mail that he was having ‘good and constructive dialogue’ with the Bank of England over the reforms and understood its objective to be ‘prudent’. 

‘But it needs to end up in an outcome where consumers are safe and there is a much greater flow of insurance capital, ’ Briggs added. 

He said it has ‘taken a long time’ to push forward with the reforms. 

Briggs said talks were ‘making progress’ but that ‘we are certainly not where we need to be’. 

The remarks suggest there is some frustration over the pace of much-discussed changes that would enable pension funds to invest more money in UK growth companies. 

Phoenix is the UK’s largest pensions and savings business, with 13m customers and assets of £259bn. More of that money could be invested in UK growth if reforms to ‘Solvency II’ rules go ahead. 

But there has been a cautious approach from the Bank of England, which is worried firms and consumers could be exposed to greater risk. 

Briggs said Phoenix would like to deploy £40bn over the next five years in such investments. 

His comments on frustration with regulators could be seen as adding to the rumblings of discontent both from industry and possibly within the Government.

 Last month in a separate intervention, the Competition and Markets Authority blocked Xbox maker Microsoft’s takeover of Activision Blizzard. 

The decision sparked an angry response from both companies, with Activision saying that ‘the UK is clearly closed for business’.