The pensions champion with attitude

THE battle lines have been clearly drawn. The Government must think again if it believes that last week's spectacular outburst against its pensions strategy from the usually understated National Association of Pension Funds was a one-off.

The NAPF, which slammed Labour's apathy about the crisis engulfing final salary pension schemes, has appointed an unashamed consumer champion as its new chief executive. 'I will be trying unapologetically to raise the profile of pensions,' says Christine Farnish, at present the voice of the consumer at the Financial Services Authority, the main City watchdog.

'The only point of companies having and running pension schemes is to benefit employees when they retire. We have to find ways to state that message more clearly.'

Those who have worked with Farnish, 52, know she means what she says. Her brief at the FSA covered everything from producing league tables of product charges to scrutinising the small print in adverts. In less than seven weeks, Farnish will bring her particular brand of campaigning to one of the hottest political issues in finance. And she clearly relishes the prospect.

'The provision of pensions through the workplace is one of Britain's national strengths,' she told Financial Mail in her first interview since her appointment was announced at last week's NAPF conference in Brighton. 'It is something we throw away at our peril.'

Farnish takes over at a time when the crisis surrounding occupational pensions has reached panic levels. Employers are increasingly balking at the cost of traditional final salary pension schemes and are desperately trying to switch their employees into money purchase schemes - cheaper for the companies, but riskier for staff.

The new FRS17 accounting standard is adding to the momentum by forcing companies to disclose every year the deficit or surplus on their pension schemes.

Not since the trauma created by pensions crook Robert Maxwell has the once-cosy world of retirement benefits felt such a chill shock. 'Pensions have been a turn-off area for consumers,' Farnish admits. 'I would like to make the debate around pension policy more visible and accessible.' Indeed, she says her experience in running consumer campaigns was a vital factor in her landing the NAPF job.

Farnish, a working mother who has four children, will have to master her new brief quickly. Already sporting an enviable tan, the svelte blonde is determined to squeeze in a two-week holiday in early August, only days after arriving in her new office overlooking Parliament.

But her in-tray will be jammed almost immediately with three crucial Government-sponsored reports. Farnish ticks them off on her fingers. 'There's the Sandler Review of financial services, the Pickering report on simplifying pension provision and the Inland Revenue's study into pension taxation,' she says. 'There's quite a lot to play for there.'

She makes it clear, however, that she does not expect quick fixes. 'I'm not thinking short-term here,' she says. 'I can see a Green Paper after this and then draft legislation in 2003. It's not going to be too late to shape and influence this. From the NAPF's point of view, the fun will really start this summer.

'I feel what is missing is some long-term thinking and a real evaluation of the policy framework. Politicians tend to be fairly close to events - an initiative tomorrow is what they want whereas we need a longer-term vision.'

Farnish is no stranger to politics. Before joining the FSA four years ago, she was deputy director of telecoms watchdog Oftel. Before that, she spent ten years in local government, becoming assistant chief executive of Cambridge City Council.

A confident communicator with a reputation for straight-talking, Farnish admits she has a lot to learn about corporate governance and the NAPF's role as industry body for funds controlling £700bn.

'I'm not the sort of person to duck challenges and I think I have achieved a lot at the FSA,' she says. 'But I was ready for something new.' With Farnish firing on all cylinders, the Government had also better be ready for something new.