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.’
More protection
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.”
Simple steps
We can all take simple steps to protect ourselves against potential scams. These include:
It is important to take professional advice before making any decision relating to your personal finances. Information within this article is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK.