The Financial Services Authority has reportedly approved an operating license for Paternoster, a specialist life and pensions firm providing services in the defined benefit sector.

Adviser news service IFAonline reports that Paternoster is aiming to buy up the defined benefit pension schemes of companies that are finding the burden of maintaining such schemes an increasing problem.

The report adds that the firm is supported by Deutsche Bank and is headed by the former Prudential CEO Mark Wood.

Demand for final salary pension transfers is growing at a pace. We expect very few businesses to continue to have a defined benefit pension scheme on their balance sheets within the next five years, IFAonline quoted Mr Wood as saying.