Download the full outcome
Detail of outcome
The government is committed to protecting people from pension scams and pursuing those who perpetuate pension scams wherever possible.
The government consulted on a package of measures aimed at tackling pension scams in December 2016. This consultation response sets out the feedback the government received and its intended next steps on the following measures:
- a cold calling ban in relation to pensions which will include emails and text messages
- a tightening of HMRC rules to stop scammers opening fraudulent pension schemes
- tougher actions to help prevent the transfer of money from occupational pension schemes into fraudulent ones
Detail of feedback received
A full list of respondents is provided in the annex to the document.
Pension scams can cost people their life savings, and leave people facing retirement with limited income, and little or no opportunity to build their pension savings back up. The government is committed to protecting people from pension scams; and pursuing those who perpetuate pension scams wherever possible.
This consultation sets out a package of measures aimed at tackling three different areas of pensions scams:
- a cold calling ban will cut off a key source of pension scams whilst also sending a clear message to consumers that they should hang-up if they are cold called about their pension
- current legislation gives pension schemes limited scope to refuse a transfer to a scheme which looks like a scam, even if they have legitimate concerns as to the safety of a member’s savings. We are consulting on clarifying the law so that firms can block pension transfers based on clear objective criteria
- single-member occupation pension schemes currently require no registration with The Pensions Regulator, and can be set up using a dormant company as the sponsoring employer. They are therefore an easy way for fraudsters to register a pension scheme with HMRC. We are consulting on making it a requirement that only active companies can register a pension scheme