The Pensions Regulator and the Financial Conduct Authority are to develop a joint regulatory strategy for the pensions sector, identifying and addressing the key risks for the industry over the next five to 10 years.
In a statement on the FCA's website on Friday morning, the two regulators acknowledged massive legislative upheaval in the industry, arising from policies such as pension freedoms and auto-enrolment.
The pensions watchdog and the FCA will continue to focus on their respective areas of the industry, but the joint strategy will look to have the two collaborate.
"As part of our ongoing efforts to ensure the sector works well for consumers and workplace pension savers, we are working together on a pensions strategy which will look at how we will work together, and with stakeholders, in the coming years," the announcement stated.
Both bodies have come in for criticism in recent years for their handling of major pensions scandals, such as the collapse of Carillion or poorly advised transfers out of the British Steel Pension Scheme.
Barnett Waddingham senior consultant Malcolm McLean welcomed the decision to work together and take a holistic approach, but said the two watchdogs may have to face up to uncomfortable truths.
"There are clear areas of overlap and duplication between the two bodies that can sometime create delays and a degree of confusion and uncertainty for stakeholders. It is important that, wherever possible, these sorts of problems are eliminated or at least minimised," he said.
"On the same theme, the question must be asked whether at some point the regulatory process could be better addressed by having a single regulator," he added. "There may be practical difficulties of scale which preclude this happening but on the surface, a super-regulator combining all the functions under one roof has much to commend it."
