The latest version will ban not just telephone calls but also emails and texts in a bid to clamp down on scammers. It will be policed by the Information Commissioner’s Office. HMRC is set to play a role in ensuring SSAS’s can only be set up by an active company.
Trustees are expected to play a greater role in checking that receiving schemes are legitimate with pension providers and schemes better able to block suspicious transfers.
Some advisers and consumer representatives remain frustrated that the ban will not include investments and once again there are worries about finding parliamentary time given the Brexit process.
It is understood the measures will not be attached to the second finance bill of 2017, which includes several other measures dropped owing to the snap election.
The government says it will ensure that only active companies, which produce regular, up-to-date accounts, can register pension schemes. Limiting transfers of pension pots from one occupational scheme to another will mean trustees must check the receiving scheme is regulated by the Financial Conduct Authority, has an active employment link with the individual, or is an authorised master trust.
The government has also released figures suggesting that almost £5m was obtained by pension scammers in the first five months of 2017 and £43m has also been unlawfully obtained by scammers since April 2014, with those targeted having lost an average of nearly £15,000.
Tom Selby, senior analyst at AJ Bell, says: “The measures announced by the Government should put a severe dent in the business models used by these fraudsters, giving savers more confidence their valuable pensions will be safe from criminals. However, it is concerning there remains no set date for implementation and we urge policymakers to fast-track these vital protections through Parliament as a matter of urgency.”
