Pension Corporation, an unregulated pension buy-out specialist, has signed an agreement with the Pensions Regulator that greatly restricts its ability to appoint trustees or otherwise control the retirement scheme of Telent, a company it bought last year for about £400m ($788m).

In announcing the deal, the Pension Regulator made clear its view that previous arrangements for Telent’s pension scheme gave rise to “an acute and pervasive conflict”, which could not be managed. Therefore, it said Pension Corporation must ask the regulator’s permission to have any of its own representatives on the trustee board.