Pension cold-calling to be banned
High numbers of elderly people face fake investment calls, texts and emails
Now, the government intends to
The pensions minister, Guy Opperman, said:
“If people have saved for a private pension, we want to protect them. This is the biggest
life’ssaving that individuals normally make over many years of hard work. By tackling these scammers, people should know that cold calling, apart from exceptional circumstances, is banned.”
“For some people, their private pension is their biggest asset. The loss of that asset is a catastrophic situation,”
Mr Opperman said.
“The Government believes these changes will provide proper protection for hard-working pensioners who have saved all their lives and want to know we are standing up and protecting them.
“We want to ensure there is no exploitation of the vulnerable or the elderly, because there is some evidence this has happened in the past. We want it to stop.”
Nathan Long, senior pension analyst at financial advisers Hargreaves Lansdown, said the rules should limit the options for scammers.
“Clamping down on calls, texts and emails won’t stop the scammers, but it sends a loud and clear message to be on your guard if you are contacted out of the blue,”
“Making pension schemes harder to set up and ensuring transfers only proceed to appropriately regulated schemes will all help to blunt the damage that scammers can inflict moving forward. But pension savers must remain vigilant,”
Tom Selby, senior analyst at AJ Bell, said the measures would put a 'severe dent in the business models used by these fraudsters'.
'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.
'It’s also important to note that this will not stop cold-calling or pension scams. Fraudsters will seek to exploit any loopholes in the rules, and many of the outfits involved will simply move their call centres abroad to avoid the ban.
'But the message this intervention sends to savers is hugely valuable and should go some way to reducing the number of people who get conned out of their life savings.
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