Introducers dodge cold-calling ban despite MPs’ concerns

The Financial Guidance and Claims Bill will not apply to introducers, the government has confirmed in a letter published today.

The letter is a response to MPs who expressed concern the cold call ban is unlikely to protect consumers and their pensions from unregulated introducers who do face-to-face marketing.

It sheds light on how the government thinks pension scams work and where the cold-call ban should be applied to stop them, but stops short of tougher action on lead generation firms, which can currently operate on an unregulated basis.

In May, the work and pensions select committee led by chairman and MP Frank Field asked economic secretary to the Treasury and MP John Glen how the ban would stop the most aggressive forms of cold-calling.

In his response to Field, Glen says cold-calling is the most common method used to initiate pension fraud.

He cites Citizens Advice figures from 2013 that found 97 per cent of pension fraud cases stemmed from cold calling.

Glen adds it is the FCA’s responsibility to ensure there is a well-functioning market for financial advice.

The Financial Guidance and Claims Bill received Royal Assent in May and is being implemented this month.

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