PLSA comments on MPs demand to ban pension cold calls

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.

James Walsh, 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.”

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NOTES TO EDITORS:

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ABOUT THE PENSIONS AND LIFETIME SAVINGS ASSOCIATION

We’re the Pensions and Lifetime Savings Association; the national association with a ninety year history of helping pension professionals run better pension schemes. Our members include over 1,300 pension schemes with 20 million members and £1 trillion in assets, and over 400 businesses. They make us the voice for pensions and lifetime savings in Westminster, Whitehall and Brussels. 

Our purpose is simple: to help everyone to achieve a better income in retirement. We work to get more money into retirement savings, to get more value out of those savings and to build the confidence and understanding of