TOP WATCHDOG ACCUSED OF CONFLICT OF INTEREST

THE chair of The Pensions Regulator, the watchdog that is supposed to protect workplace pensions, was a key promoter of the controversial schemes that almost blew up the financial system, The Mail on Sunday can reveal.

Sarah Smart, right, was appointed last year and earns £73,840 in the lucrative two-day-a-week job, where she is responsible for safeguarding the nest eggs of millions of Britons.

In a previous job at insurance firm Standard Life, she had a senior role ‘developing and managing’ the Liability Driven Investment (LDI) products that prompted a multi-billion pound Bank of England bailout.

Last night Smart was accused by pensions experts of a potential conflict of interest. One said: ‘It’s going to be a bit difficult for her when an inquiry looks into what’s been going on.’

The Pensions Regulator said: ‘Sarah Smart worked at Standard Life 14 years ago, and for the last three years of her time there she was not working directly in LDI. There is no conflict of interest.’

The Department for Work and Pensions was contacted for comment.

When Smart was hired, Pensions Minister Guy Opperman said: ‘The chair is a vital part of The Pensions Regulator, providing effective oversight of this high-profile organisation and engaging and building positive relationships with stakeholders.’

A replacement for Opperman, who quit days after Liz Truss became Prime Minister, has yet to be announced.