Pension giant boss backs regulators concerns after competition watchdog blocks Microsoft acquisition of Activision Blizzard
The CEO of pension and life insurance giant Phoenix has backed a warning that the UK’s regulatory approach could mean the country is seen as ‘closed for business’.
Andy Briggs said “that’s definitely a risk” when asked if he agreed with video game maker Activision Blizzard after Britain’s competition watchdog blocked Microsoft’s acquisition.
Briggs is involved in talks with a separate arm of the UK regulatory system to try and relax the rules so that more of Britain’s £3.4 trillion in pension wealth can be invested usefully.
He told the Mail he had a “good and constructive dialogue” with the Bank of England about the reforms and understood its aim was “cautious”.
Phoenix chief executive Andy Briggs
“But it has to end in an outcome where consumers are safe and there is a much greater flow of insurance capital,” Briggs added.
He said it has taken “a long time” to make progress with the reforms.
Briggs said talks are “progressing” but that “we’re definitely not where we need to be yet.”
The comments suggest some frustration at the pace of much-publicized change that would allow pension funds to invest more money in UK growth companies.
Phoenix is the UK’s largest pension and savings company, with 13 million customers and assets of £259 billion. More of that money could be invested in growth in the UK if ‘Solvency II’ rule reforms go ahead.
But there has been a cautious approach from the Bank of England, which fears exposing businesses and consumers to greater risks.
Briggs said Phoenix wants to commit £40 billion to such investments over the next five years.
His comments about frustration with regulators could be seen as adding to the rumble of discontent, both from within the industry and possibly within government.
Last month, the Competition and Markets Authority blocked the acquisition of Activision Blizzard by Xbox maker Microsoft in a separate intervention.
The decision sparked an angry response from both companies, with Activision saying that “the UK is clearly closed for business.”