Government’s latest efforts to prevent pensions scams through cold calling as progress is welcomed, but the fight very much continues to help protect members’ benefits. Michael De Souza, Technical and Compliance Manager at Trafalgar House.
The inclusion of emails and text messages in the ban, as well as phone calls, was a welcome addition that helps reflect the changing ways that people communicate, but it would be naive to believe that there will now no longer be ways by which scammers can attract members.
As the number of people contributing to a pension has increased with auto enrolment, so too have the number of companies involved in scams and their techniques continue to become more sophisticated.”
Administrators must continue to play a key part in looking out for signs that a member’s request involves a scam, as well as spotting any trends that could indicate new types of approach from scammers.
However, this will need to be supported by a strong communications exercise to the public from The Pensions Regulator and the Department for Work and Pensions, given that administrators still do not have the power themselves to prevent a transfer going through or give the affected member any real advice.”
The details within the new proposals around providing trustees with greater powers to prevent transfer from proceeding – if the receiving scheme is not regulated by the FCA, is not an authorised master trust or where there is no active employment link – are a welcome step forward of course.
However, it is somewhat disappointing that a firm date was not given for the tabling of the legislation, only the steer of ‘when parliamentary time allows’. This is a missed opportunity to start the fight straight away, rather than having more members falling victim before the legislation comes into force.”
