Aviva PLC (LSE:AV.) said proposed government plans to force pension funds to invest in UK start-ups are not the right approach, according to reports from Reuters.
The ‘Future Growth Fund’ is being devised by government officials and could see funds, including pension schemes, forced into contributing to create a £50bln pot for investments.
The fund would be used to help grow local start-ups while also trying to reduce the number of tech firms moving to New York.
Amanda Blanc, the London-based life insurer's chief executive, said pension fund trustees should be allowed to make decisions that are right for them.
"We're big supporters of investing in the UK... However, we are not supportive of mandated participation," the insurance firm boss told reporters.
“We do not feel that creating a complex and bureaucratic fund... is the right way forward at all."
Local Government Pension Scheme Central, a manager of eight local authorities’ pensions, also opposes plans to force retirement funds into investing in government projects.
The group last week said it would resist the campaigns forcing pension funds to invest in ‘levelling up’ projects.
The Labour Party has already revealed it would be willing to make pension funds participate should it come into power in the next election.
Labour shadow chancellor, Rachel Reeves, believes that measures to force the funds into investing would not be required because of the pension sector’s goodwill.
However, she warned that “nothing is off the table”.
Aviva reported an uptick in inflows to its pension business in its first quarter, a trading update revealed.
“Flows were up 25% due to 134 new scheme wins and higher wages feeding through to higher pension contributions,” Blanc said.