Pension schemes and 'non banks' in general should be required to emulate banks and show in detail how they could be wound down in a crisis without destabilising the wider financial system, Britain's Financial Conduct Authority said on Tuesday.

Liability-driven investment (LDI) funds, which help pension funds meet future payouts, struggled to meet collateral calls on their holdings of UK government bonds in September, forcing the Bank of England to step in to buy gilts.

FCA Chief Executive Nikhil Rathi said "work needs to be done" in pension funds and other 'non-banks' on resolution, or winding themselves up, in a crisis.

"How do we cope with failures?" Rathi told the House of Lord's industry and regulators committee. (Reporting by Huw Jones, Editing by Iain Withers)