View more on these topics

Pension cold-calling ban to start by June

Work and pensions select committee chair Frank Field

A ban on pensions cold-calling will be put in place by June, following the tabling of new amendments to the Financial Guidance and Claims Bill.

Ahead of the Commons report stage of the Bill on 12 March a “new clause 3” allows for the ban to start by the middle of the year.

The Government also tabled amendments to clause 19, which relates to pension guidance.

Amendment 13 requires pension schemes to make sure someone wanting to access their pension savings is “referred to appropriate pensions guidance” and “has either received appropriate pensions guidance or has opted out of receiving such guidance”.

Govt enlists new guidance body in battle against cold-calling

Amendments 13 and 14 remove the reference to independent financial advice. According to a statement from the work and pensions select committee this is make sure savers are directed towards the independent guidance service.

Amendment 15 says the FCA’s rules should detail how people will indicate they have received guidance or expressly opted out.

Work and pensions committee chair Frank Field says: “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.”

Pensions cold-calling ban extension finds overwhelming adviser support

Field says: “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 the best use of their savings.”

Recommended

4

Police probe suspected cold-callers linked to collapsed advice firm

The police and The Pensions Regulator have launched an investigation into a number of pension schemes suspected of being linked to cold-calling. The regulator is concerned pension holders have been phoned and persuaded to transfer their funds into poorly-run schemes with the promise of higher returns and cash incentives upfront. As part of the same […]

Leading Edge – April 2017

There is little doubt 2017 will be a year of political uncertainty. Leading Edge is Royal London Asset Management’s regular review of investment markets. This edition explores some of the impacts that this uncertainty is having on investors, from the pitfalls of prediction within UK equity investing to the dangers of opting for convenience over […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. Julian Stevens 7th March 2018 at 9:55 am

    A ban on cold calling is all very well, but how, in practice, will it actually be enforced, particularly against those making such calls from offshore locations?

    It’s illegal to dispose of toxic waste in streams and such like. A year or so back I spotted somebody doing what looked very much like it in the stream at the back of our office complex, so I noted the vehicle registration number of the offending party’s van and reported it to the relevant authority but, to the best of my knowledge, absolutely nothing was done about it. I never even received a response to my report. What do these people actually do for the public money they’re paid?

    The only practical strategy to combat cold calling is to put people on their guard by way of a media blitz via radio, TV and newspapers. I know that most providers of various products nowadays regularly send investors leaflets warning against scams but this alone is clearly not enough. Amongst all the other reams of bumpf that regulation requires providers to send out, it’s entirely possible that such leaflets aren’t even noticed, let alone noted.

    Legislation against cold calling without a practical plan of action to back it up is largely pointless.

  2. Robert Milligan 7th March 2018 at 10:10 am

    It must be any business “sourced” from a cold call, even if it appears to come from an introducer, if the Introducer is cold calling then its still covered by the Ban, even those calling from out side of the UK Good Luck monitoring this one! The “Honest” Financial Adviser will prevail.

  3. As DH says or hints at, the law will be unenforceable. Much better to publicise warnings to the general public than to try and trace back unwanted cold calls to overseas numbers.

Leave a comment