Proposed quantitative requirements based on Solvency II are not appropriate for all pension schemes, the Financial Reporting Council (FRC) has said.

The regulator has made the statement in its response to the European Insurance and Occupational Pensions Authority’s draft advice to the European Commission on the review of the Institutions for Occupational Retirement Provision directive.

The FRC said it was particularly concerned about the large increase in the regulatory burden that Solvency II style regulation would impose. EIOPA was “strongly urged” to carry out a thorough impact analysis before making any recommendations to the commission.

Chief executive of the FRC Stephen Haddrill said the regulatory and professional framework for UK pension funds promotes high quality provision supported by good corporate governance and advice.

“As proposed, the application of Solvency II requirements will make them far more expensive and risky for many employers leading to their early closure,” he said.

View the FRC’s response to the consultation here.

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