Commenting on cold calling Ben Fairhead, a partner at international law firm Pinsent Masons, said: “The report recognises that pension scams have evolved, and the focus appears to be shifting ever more towards fraudulent investments arising from legitimately released pension funds through Freedom and Choice. No one doubts it is happening and very probably in larger than reported amounts. However, Guy Opperman’s letter to the Committee confirms precise statistics are lacking given the way fraud reports are made. It would be helpful to see analysis developed so that more could be done to address the specific types of scams taking place now as opposed to being a few steps behind tackling older forms of pension scams.
In the meantime, there is virtually unanimous agreement that a ban on cold calling, whilst not a silver bullet, would carry little downside and potentially make a difference at the very least in heightening public awareness of all types of pension scams. The delay in implementation suggests this is at risk of being overcomplicated. The Committee has put forward a practical way of bringing forward the ban, and it will be interesting to see whether the government now takes it up.”
Commenting on guidance Stephen Scholefield, a pensions partner at Pinsent Masons, said: "As pension options get more complicated, so does the challenge of how to help savers make the right decisions. Nudging savers towards appropriate guidance is a step in the right direction, but only part of the battle. We need to get people more enthused about their pension savings throughout their working life, so that guidance or shopping around isn’t a chore. If we can help people visualise their futures, they may be keener to invest the time to make the right decisions when it comes to making use of their hard earned savings."
A copy of the DWP announcement can be found here:
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