Pension funds should be given a delay of up to two years to implement the EU's new rules governing the derivatives they use to reduce financial risks, according to their advisers - as the current rapid timescale threatens to make things worse, not better.

The new rules are an attempt by the EU authorities to make the trading of derivatives, including swaps, safer. The regulation is being discussed in Brussels throughout January and February and are expected to come into force by the end of 2012 or possibly early in 2013.