View more on these topics

ABI chief urges Govt to strengthen pension scam blocking powers

HuwEvans_700x450

The ABI is pressing the Government ahead of next week’s emergency Budget to strengthen the powers of providers to reject transfers to suspected pension liberation schemes.

Under present rules members have a statutory right to a transfer within six months of making a request.

A number of providers have seen cases where they have blocked transfers taken to the Pensions Ombudsman, but ABI director-general Huw Evans says a series of rulings have failed to provide sufficient clarity on the issue.

Evans says: “Everyone is concerned about fraud because there is obviously a much bigger opportunity for scammers than there was
under the old system.

“The law could be strengthened further to allow providers to reject – without any equivocation or comeback – a transfer request which they believe to be fraudulent. We need absolute legal clarity that, if in doubt, providers can reject a transfer.”

Evans also considers calls from consumer groups for the creation of a state-backed drawdown provider similar to Nest are “premature”.

He says: “The market is only just starting to develop and we should see what it can deliver before looking at Government interventions that create Quangos that could distort the market.

“We have one of the most competitive and effective long-term savings markets in the world and so it seems odd to suggest there is the need for some sort of state intervention.”

Recommended

House-Home-Property-Ladder-Mortgage-700x450.jpg

Keystone to ramp up lending with new funding line

Keystone Buy to Let Mortgages has secured a new funding line with peer-to-peer lender Landbay and plans to ramp up its lending. Mortgages for Business managing director David Whittaker resurrected the Keystone brand in April 2012 after securing a three-year funding line from FTSE 250 new entrant Aldermore. That deal has now come to an […]

MM leader: Pension transfers lag tech advances

Osborne, the chief puppeteer of the UK pensions market, is at it again. The focus of his recent reactionary announcement on pension freedoms was plans to impose a cap on “excessive” exit fees. But the other strand, that of a “quicker and smoother” pension transfer process, poses no less challenge for the industry. More details […]

FCA logo new 3 620x430
12

FCA pension scheme drives £58m loss

The FCA made a loss of £58.3m in the year to 31 March 2015, its annual report shows. This compares to a £29.3m loss in 2013/14. The FCA says the figure is in line with expectations and has been driven by a larger loss in its defined benefit pension scheme, plus consumer credit costs. The […]

Santander-700x450.jpg
1

Santander unveils ringfencing plans

Santander has revealed how its UK business will meet the ringfencing rules for banks, appointing heads of new retail and corporate divisions. The UK branch of the Spanish bank will split into a retail arm for personal and small business customers and a corporate division for institutional clients and its markets business, according to the […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. The simplest most cost effective way to stop pension liberation fraudsters & investment fraudsters dead in their tracks is to make it illegal for any investment & pension transfer to take place unless the advice is provided by a regulated adviser & also make it illegal for any provider or ceding scheme to allow a transfer or investment to take place unless they have proof that advice has been given by a regulated adviser & that the money will be invested in a regulated investment. If all aspects of the transaction are regulated then the client’s investment is given maximum protection under current legislation.

  2. Hyman Wolanski 6th July 2015 at 11:30 am

    Whilst that would, undoubtedly, work, it is rather akin to insisting that someone walks in front of a moving car with a red flag to ensure there are no accidents! Whilst many people would undoubtedly benefit from advice, there are people who do not need/want this, so requiring them to take advice is unreasonable. A large part of the problem is that we no longer have a ‘caveat emptor’ environment but have a heavily, yet flawed, regulatory environment.

    On a more constructive note, just make pension scams illegal and those involved in promoting them guilty of a criminal act. I bet that would do the job!

Leave a comment