Barclays’ ‘Opaque’ Pension Plan Transactions Draw Regulatory Scrutiny
- PRA hints transactions could be unwound, without naming banks
- Autonomous, Numis analysts link warning to Barclays’ 2019 move
This article is for subscribers only.
U.K. regulators have warned banks against carrying out complex pension plan deals that are structured to delay any hit to capital reserves, a broadside that analysts say could affect Barclays Plc.
The Prudential Regulation Authority said in a statement Wednesday that lenders should avoid entering into agreements that defer the impact of pension scheme contributions as they could breach its rules and overstate a company’s capital strength.