banks - fraud

08 Mar 2018

Ban on pension cold calling to come into force in June

The government has tabled an amendment to the Financial Guidance and Claims Bill, which could see pension cold-calling banned in the UK by the end of June. The proposal means that the Secretary of State for Work and Pensions, Esther McVey, will have to exercise the regulations banning pension cold-calling by June, and if this isn’t done, she must explain to parliament why it hasn’t been done.

The chair of the work and pensions select committee, Frank Field, commented on the news:

“The government is now almost there, within spitting distance of what the committee proposed. I am delighted that they will be bringing forward a ban on pensions cold calling by June, as we called for. This represents a major leap forward in the urgent fight to protect pensioners’ savings against scams and sharp practice”.

A further amendment has been tabled which focuses on offering customers impartial advice regarding their pensions, rather than from pension providers themselves. Providers will have to check that their customers have received guidance from the new impartial body before selling pension products.

Commenting on this, Mr Field said:

“The government can now give even greater reassurance by explicitly specifying on the face of the Bill, rather than in an explanatory memo, that the public guidance body will be the sole source of the “appropriate pensions guidance”. Guidance must come from independent and impartial experts, rather than from self-interested pension providers, if individuals are to make best use of their savings”, he suggested.

By Liam Cross