The European Commission's announcement that it is shelving tough new funding rules for pension schemes has been welcomed across the industry, but consultants are warning that plans to push ahead with other measures on transparency and governance could still cause headaches.

The European Union's current review of its main pensions directive, the Institutions for Occupational Retirement Provision directive, contains three parts. The first part, the funding rules, was put on indefinite hold yesterday by internal markets commissioner Michel Barnier, after it became clear it was politically unpalatable.