On the go: The Pensions Regulator has urged pension providers, trustees and administrators to sign up to a new pledge to protect members from the growing threat of scams.
The 'Pledge to Combat Pension Scams' asks signatories to warn members regularly about scams, promote guidance services, document their actions, and clearly communicate their concerns to both members and authorities.
The pledge also requires schemes and professionals to familiarise themselves with best practice on scam detection and prevention, as set out in resources such as the regulator's Trustee Toolkit and the Pension Scams Industry Group's code.
At least £30m has been identified as lost to scams since 2017 by Action Fraud, although the true figure is likely to be much higher.
Pledgors can sign up on a dedicated website, hosted by TPR. Margaret Snowdon, chair of PSIG, which supports the pledge, said the commitments help trustees and other to realise their duties to members.
“The pledge to combat pension scams is a great step in raising standards in anti-scam practice. It seeks to make the industry more accountable for pension scams and encourages confidence in implementing the practices set out in the PSIG Code that will lead to greater protection for members," she said.
Meanwhile, TPR's executive director of frontline regulation Nicola Parish said: “Pension scams devastate lives. As the first line of defence for savers, trustees and pension providers have a vital role to play in beating the people behind these despicable crimes.
“Scammers are targeting pension pots big and small and so I call on the industry to do its bit and make the pensions pledge to help prevent people losing a lifetime of savings.”
New measures contained in the pension schemes bill and regulations that will follow are designed to give trustees and regulators greater power to delay transfers where there is a suspicion of scam activity.
Pushed in committee stages about an amendment altering the statutory right to a transfer where red flags are identified, pensions and financial inclusion minister Guy Opperman insisted that clause 125 of the government's bill will allow for this aim to be achieved via regulations.
Commenting on the launch of the pledge, Mr Opperman said that with the new bill, "I am confident that we can stop the callous crooks who rob people of their retirement savings".
"I would encourage all pension providers, trustees and administrators to pledge their commitment to this campaign and help do their bit to crack down on pension scams," he continued. "This initiative will also give these industry leaders a chance to step up ahead of the legislative protections outlined in the bill.”
