New regulations to prevent pension scams
Pension trustees and scheme managers received new powers on 30 November 2021 to help protect pension savers by stopping suspicious scam transfers. The new regulations will enable trustees to prevent a transfer request if they see evidence of ‘red flags.’
Before the change, pension providers were not allowed to refuse a transfer where the saver had the right to make it, even if the transfer seemed suspicious. With pension scam losses totalling millions each year, the Financial Conduct Authority (FCA) is keen to tackle scams head on to ensure the long-term health of the pensions market. In a speech to delegates at the Pensions and Lifetime Savings Association, the FCA’s Executive Director of Markets Sarah Pritchard said steps have been taken to stop scams reaching consumers, “We want people to be better protected from the risks of scams and know how to protect themselves against them. Our ScamSmart campaign... gives knowledge and tools to help people protect themselves from scams.”
We can all take simple steps to protect ourselves against potential scams. These include:
– Making sure you check who you’re dealing with
– Never giving out personal information you wouldn’t share with a stranger – Not feeling pressurised into making quick decisions
If you are worried about your pension, please talk to us!