The Financial Services Authority (FSA) director has said the relationship between it and The Pensions Regulator (TPR) needs more work due to the differences between the organisations.
The comments were made in an evidence hearing before the House of Commons work and pensions select committee.
Responding to questions about how the FSA and the pensions watchdog work together, FSA managing director Martin Wheatley (pictured) admitted they need to work harder before warning the relationship could become more complicated in the future.
He said: "We have to work harder at it, that's the reality. We do have different structures and objectives and different ways of working and it just means we have to work harder. So we put a lot of effort and resource into the liaisons across the two organisations.
"When the FSA does break up [to form the Financial Conduct Authority and the Prudential Regulatory Authority], the PRA will have the prudential oversight of the major insurers, we will then have three regulators then who have different aspects of oversight of the provision of pensions."
TPR chief executive Bill Galvin was more positive about the relationship suggesting there was a "fair amount of similarities" between the aspects both regulators cover despite the organisational differences.
"We've looked at what we do as a regulator and how we go about it and we've looked at what the FSA does as a regulator and we believe we're focused on the quite similar things," he added.
This comes after TPR pledged to work closely with the FSA in ensuring the standard of DC provision is raised across both trust- and contract-based schemes, as part of its new regulatory approach.
The FSA director also admitted it has no specific departments monitoring pension provisions despite being responsible for governing contract-based schemes.
In response to questions about how many employees the FSA has monitoring contract-based schemes Wheatley said he could not explicitly say.
He added: "With our format, we have a relatively small policy team that looks at pensions, we have a very large supervision team and a very large enforcement team that looks at banks, insurers, independent financial advisers, equities and funds.
"There are teams who specialise in looking at the big insurers, who are the big providers of pensions, but those big insurers we look at across their business and the full range of business.
"We identified areas of the pensions industry that we would be giving focus to, so we focus on those things when we go into the major insurers, but I would not say we have got a supervision pensions team that just does that."
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