LONDON (AFX) - Goldman Sachs has applied to the Financial Services Authority to set up a wholly owned life assurance subsidiary in London as it prepares to launch a business buying corporate pension schemes, the Financial Times reported citing a person close to the US investment bank.

The company, which will be run by Addy Loudiadis, a senior Goldman banker, is to be used as a vehicle to acquire pension schemes closed to new members.

The issue has attracted interest from insurers and entrepreneurs who believe that they can finance the liabilities more efficiently than companies can.

Goldman, which has a large team of bankers advising on pensions issues, believes companies will face growing pressure from regulators and trustees to find a permanent solution to their pension fund deficits -- especially if they are the subject of a leveraged takeover, the newspaper said.

Goldman joins a host of specialist investors and insurance companies moving into the lucrative bulk annuity market, currently dominated by Prudential PLC and Legal & General PLC.

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