In an open letter to the FCA, Railpen and nine other large UK pension schemes said the reforms will “roll back fundamental investor protections” and expose pension scheme members to more risks and higher costs.
Last month, Andrew Griffith, the City minister, urged pension funds to embrace a “culture of risk-taking” amid fears that a reluctance to put money in the stock market is holding the economy back.
Ms Hoggett said: “The simple reality is we need to make sure that we have a level playing field for companies to choose where they want to get access to capital.
“There is no point in having a theoretically perfect market that no one uses. All the FCA’s rule [changes] are trying to do is to create a level playing field with what happens in Europe and the US.”
Separately, on Thursday, the Government’s legislation aimed at overhauling certain City regulations, the Financial Services and Markets Bill, received Royal assent.
Writing in The Telegraph, Mr Griffith said the passing of the Bill marked “a legacy defining moment for Brexit”.
He added: “For those that count them, the ‘Brexit dividends’ are plenty, and this legislation delivers one which has the potential to give our economy a much-needed rocket boost. We can now tailor regulations for the UK insurance sector – known as Solvency 2 – potentially unlocking £100 billion for productive investment including for clean energy projects and social housing.”
