You are here: Home - Retirement - Retirement planning - News -

Pension cold calling to be banned in June

Written by: Paloma Kubiak
The scourge of pension scams should be reduced this summer as the government has issued a date for pension cold calling to be banned.

In an amendment to the Financial guidance and claims bill the government has implemented an end of June deadline for pensions cold calling to be banned.

If the Secretary of State hasn’t made regulations on this by then, they will need to explain why the regulations haven’t been made, as well as set a timetable for implementation.

In an explanatory statement published today, it stated: “This new clause inserts a power for the Secretary of State to make regulations (subject to the affirmative procedure) banning unsolicited direct marketing relating to pensions. If the power is not exercised by June, the Secretary of State must explain to Parliament why not.”

Last August the government announced it would ban private pensions cold calling, including emails and text messages to protect savers from unscrupulous scammers.

But there was widespread criticism as no firm date had been given for the ban to go ahead. In December 2017, the Work and Pensions Select Committee called for a June 2018 implementation date.

Kate Smith, head of pensions at Aegon, said with the ban not coming into force until the summer, people still need to be vigilant.

“Even once it’s in place, people will still need to protect themselves from fraudsters based overseas, not affected by the ban, or others who simply flout it,” she said.

“Introducing a ban offers a degree of protection, but on its own won’t be enough. The government needs to tell people about it by running public awareness campaigns. Without this, people may not know of the ban and the fact that unsolicited approaches are illegal from June.

“The good news is that HMRC is already trawling its pension scheme database getting ready to wield its new powers to deregister illegitimate schemes from April.

“For now the battle has been won, but it would be premature to celebrate until pension scamming is stamped out completely. The best way to do this is to give pension schemes powers to block suspicious transfers, so hard earned pensions aren’t moved to pension scam vehicles in the first place. This would stop a lot of heartache. Government, regulators as well as the industry have a role to play here in the fight to keep pension savers’ money safe.”

There are 1 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

  • @YourMoneyUK I will be travelling to UK from Gran Canaria and im in reciept of pension credit, am i eligible for this payment?
  • Unclaimed money scheme expanded to aid Covid recovery: @YourMoneyUK
  • RT @thenutmegteam: Keeping on top of your pension now could well pay dividends in the future. ⏳ Nutmeg's savings and investments specialis…

Read previous post:
The risks of failing to check your target retirement date

Over-45s aren't making plans to match their future ambitions, according to research from life savings company Standard Life.