The Work and Pensions Committee has announced today
that the Government should act now, through the Financial Claims
and Guidance Bill, to ban pension cold calls.
, Policy Lead: Engagement, EU
and Regulation at the Pensions and Lifetime Savings Association,
commented:
“We agree with the committee that urgent action is
needed on pension scams. People are losing their life savings to
scammers every day and there are steps we could be taking now to
protect them.
“Government should extend its authorisation regime to
all schemes receiving transfers, not just master trusts as at
present. This would ensure people could transfer their pension
savings secure in the knowledge that they were dealing only with
legitimate providers. An authorisation regime would help to drive
scammers out of the market.”
On the cold calling ban
“Banning cold calling would be a step in the right
direction and we support the Committee’s recommendation to
introduce it as soon as possible. However, the ban is only one
part of the solution, as some scammers would find a way around
it. We still need a comprehensive approach based on authorising
pension schemes.”
On default guidance
“We agree that well-run guidance services such as
PensionWise have an important role to play in helping people
understand their options, but requiring people to take or opt out
of guidance is not the answer to scams. Rogue operators and
advisers would simply get people to listen to them instead of the
guidance service.
“There is more to be gained from allowing pension
trustees to signpost their members towards good products that
suit their needs in retirement. At the same time, the FCA should
crack down hard on anyone who poses as an independent financial
adviser or who provides ‘advice’ that does not serve the member’s
best interests.”
