David Norgrove, chairman of the UK Pensions Regulator, has warned pension fund trustees against overstating their funding needs to the extent that they risk their companies' trading operations.

Speaking at the launch of the Association of Corporate Treasurers' spring paper, he said: "It is indeed likely that some companies will feel pressured to fill deficits faster than they would have chosen. Trustees' interests may diverge from those of management, however there has to be a balance. Prudence can be reckless."