The latest Work and Pensions Committee report argued the introduction of auto-enrolment means “rigorous pension scheme governance is essential”.

However, it said the complexity of multiple regulatory bodies – the Pensions Regulator (TPR) and the Financial Services Authority’s (FSA) successor agencies, the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) – risks creating gaps in governance standards.

Committee chairman Dame Anne Begg said: “It is essential that all members of workplace pension schemes are protected from poor governance, irrespective of the particular scheme they are in.

“We do not believe this is always the case under the current regulatory system and evidence from the regulators failed to convince us otherwise.”

The relationship between TPR, which has responsibility for trust-based schemes, and the FCA, which now governs contract-based schemes, must be stronger than previous joint work arrangements to ensure defined contribution (DC) schemes are properly managed as auto-enrolment is rolled out, the report said.

However, it added that the committee is “not convinced that the FCA is the appropriate body to regulate contract-based pension schemes”.

The report concluded: “We remain concerned about current regulatory gaps and the potential for further gaps to arise as a result of three regulators having a role to play in pension regulation.

“We believe that it is necessary for a single regulatory body to have sufficient powers to ensure that all members of workplace pension schemes are given adequate and consistent protection. We therefore recommend that the government reassess the case for establishing one body with sole responsibility for regulating workplace pensions.”

However some say that the committee is right but for the wrong reasons.

Tom McPhail, head of pensions research at Hargreaves Lansdown, said: “There are far too many regulatory bodies involved in UK pensions and the result is a bit of a mess.

“The only workable answer is to roll all of TPR’s activities into the FCA and for the FCA to have sole responsibility for all aspects of the pensions system. In the meantime we have six organisations involved: FCA, PRA, TPR, HMT, DWP and HMRC.

“It’s hardly a surprise that the system isn’t working efficiently.”