UK politician Lord Hill is set to be handed a senior economic post in Brussels, which will include responsibility for the new Solvency II regulations for the insurance industry, by European Commission President-elect Jean-Claude Juncker.
Lord Hill will take up the newly created post of commissioner for financial stability, financial services and capital markets union once the make-up of Juncker's commission is approved by the European Parliament.
The portfolio has been created after the decision to break up the existing internal market department of the commission, headed by French commissioner Michel Barnier, and move responsibility for financial regulation.
Lord Hill will therefore be responsible for the European supervisory authorises, including EIOPA (European System of Financial Supervision), the regulator for insurance and pensions.
The appointment was welcomed by senior UK politicians.
The official spokesman for Prime Minister David Cameron said: 'We welcome president-designate Juncker's announcement of the new European Commission-designate.
Chancellor George Osborne added on Twitter that the announcement was 'great news' for Britain.
He said: 'Look forward to working with Lord Hill, EU financial services Commissioner, to build safer & more competitive sector.'
Actuaries Barnett Waddingham said the announcement would be a boost for UK pension schemes.
Rowan Harris, a corporate actuary at the firm, said: 'This is fantastic news for UK pension schemes and their sponsoring employers. The UK government has recently reiterated its opposition to European proposals which could have damaging effects on UK pension provision, already among the best in Europe.'
James Walsh, the National Association of Pension Funds' EU and international policy lead, said Lord Hill's appointment was 'surprising and good news'.
'No one expected the UK Commissioner to be allocated the coveted financial services portfolio that includes responsibility for workplace pensions,' he said.
'Although issues such as the IORP Directive and holistic balance sheet are unlikely to go away, today's news makes it much more likely that we will receive the good outcomes needed on these two crucial issues to secure the future of workplace pensions.'