The UK Pensions Regulator has tightened up guidance relating to the way takeovers might have an impact on the strength of pension schemes. This could make corporate activity more time-consuming and costly, according to consultants.

The new guidance encourages trustees to enter into negotiations with employers over a takeover, even in situations where employers do not feel this would impact on the health of schemes. In these cases, employers have been able to apply for clearance from the regulator, without any need for discussions.