Barclays Pension Plans in Focus as U.K. Warns on ‘Opaque’ Deals

U.K. regulators have warned banks against carrying out complex pension plan deals that are structured to delay any hit to capital reserves, a broadside that analysts say could affect Barclays Plc.

The Prudential Regulation Authority said in a statement Wednesday that lenders should avoid entering into agreements that defer the impact of pension scheme contributions as they could breach its rules and overstate a company’s capital strength.

The regulator said that it “will carefully scrutinize transactions,” including any that would allow firms to avoid regulatory capital deductions, describing the trades as “complex, artificial and opaque,” and hinting that existing ...