“Despite all the media attention, many people still don’t know that the minimum age to make withdrawals from a pension is 55. Added to that is the dangerous precedent set when Royal London lost its appeal over the right to deny a transfer to a client it suspected was a victim of liberation fraud. Forcing providers to facilitate transfers in such situations is a recipe for disaster, and it raises the question of who is looking out for the clients.
“Liberation is not the only problem the industry faces, though. Viewers of Panorama’s ‘Pension rip-offs exposed’ on Monday night would also have seen how easy it is to be duped into transferring into risky and unsuitable investments without appropriate advice or risk warnings. We witnessed many of the techniques that earned advisers a bad reputation – working for commission, pushing a hard sell and outstaying their welcome. Worst of all was the salesman massively downplaying the benefits of a final salary pension while promising a 10% return in a “cautious” overseas property investment.
“For how long do we all need to see these activities before more is done to stop them? It isn’t enough to know that our own companies are fully regulated and working in the best interests of our clients.
“In my view, there needs to be an industry-wide campaign to raise awareness of this issue. We need to accept the reality that most of the general public are not reading the financial trade press where scams, the FCA and its register of regulated firms are most commonly discussed. With a focused effort, we can help people keep their savings safe, and finally reduce the number of liberation complaints the Ombudsman reports.”
|
