Combating Pension Scams is at the forefront of Trustees’ decision-making to ensure their members’ funds are fully protected within their pension scheme.
Since 2015, PSIG have developed and launched the Code of Good Practice. There have been updates over the years and from 1 April 2021 the latest version has been published, below are a summary of changes which have been implemented.
The Pensions Regulator
- Combat Scams Pledge initiative – Pledging to combat pension scams shows your intent to protect your members. It tells your members and the pensions industry that you are committed to stopping scammers in their tracks. Once you have taken the pledge it is up to you and your scheme or organisation to take action.
- Letter to members warning them of the potential risks of transferring from a defined benefit (DB) scheme to a defined contribution (DC) scheme.
Guidance for Trustees
- Notify members of the free, impartial pensions guidance available from Pension Wise.
- Encourage members to take regulated advice to understand their retirement options.
Financial Conduct Authority (FCA)
- Updated to the ScamSmart site since the Covid-19 pandemic.
- Concerns regarding international SIPPs and offshore investment bonds.
- Providing a warning on complicated investment structures.
- Guidance on what a member should expect when taking advice in relation to transferring out of a DB scheme and into a DC scheme.
What can you do to prevent/report pension scams?
- Tighten your internal controls around your due diligence process. For instance, make better use of telephone calls to engage with the member and hold a final telephone call at the date of transfer to ensure payment is being made to the correct member.
- Any cause for concerns with transfer payments should be reported.
- Maintain appropriate and thorough management information including any transfers refuse and cancelled by the member when concerns have been made.
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