View more on these topics

Pot follows member could trigger spike in pensions liberation

Providers and the DWP have warned of the risk of a possible spike in pensions liberation fraud triggered by pot follows member reforms.

Speaking at a Tisa event yesterday, experts said they were concerned that automatic pot transfers could open up new avenues for fraudsters.

Standard Life head of workplace strategy Jamie Jenkins says: “This will be used by some people to make money by criminal means. There will be people out there thinking, ‘as soon as I can understand this I will figure out how to exploit it to make money out of it’.”

Pinsent Masons partner Simon Laight warns that checking for liberation fraud has slowed down transfers and that pot follows member reforms could reverse that.

He says: “Progress has been made on tackling pensions liberation but perhaps we need to examine whether this is going to work in the automated world.

“With automatic transfers coming in you have got potential problems because part of liberation being slowed down has been through putting the onus on the transferring scheme to do the due diligence and raise awareness.”

Panellists at the event suggested one method fraudsters could exploit may see phony schemes registered on automatic transfer networks, allowing pots to be moved electronically before the fraud is detected.

The DWP says it is concerned about ensuring any delivery system is robust enough to resist liberation attempts. Head of automatic transfers policy in the private pensions policy division Toni Clark says: “We need a system that is simple without increasing the rick of pension liberation.”



The technical quiz: 10 July 2014

To help you keep up with the fundamentals of tax, retirement and financial planning, try answering these questions  Question one Greg has gifted a 20% shareholding in an unquoted trading company, worth £150,000, to his son. What is the effect of claiming holdover relief on this disposal? a) The gift relief claimed will extinguish the […]


Absolute return funds show high equity correlation

Advisers are being warned to scratch beneath the surface of absolute return funds as data reveals they are highly correlated with the FTSE All Share. Of the 57 funds in the IMA UK Targeted Absolute Return sector with three-year track records, 14 have correlations of more than 0.71 with the FTSE All Share over the […]


MAS’ top earning director on £221k steps down

The Money Advice Service’s highest-earning director is to leave the organisation. Marketing and service delivery director Karen Broughton, who earned a total pay package of £221,000 in 2013/14, is leaving in September to join Travelodge as sales and marketing director. Her pay packet, revealed in the MAS annual review today, includes a basic salary of […]

UK policy: Kate Moss and short-termism

“Nothing tastes as good as skinny feels,” said supermodel Kate Moss, who is not often credited for her insights into policy making. Perhaps she should be. In politics, as in matters of diet, the course of action that is the best over the long term is often not the most desirable course of action in the short term. Add the instant gratification of the democratic electoral cycle and, instead of good policy making, you sometimes get the equivalent to a midnight binge in front of the fridge.

Read more

Important information

Investment risks

The value of an investment and any income from it can fall as well as rise and you may not get back the amount originally invested. Forecasts and past performance are not a guide to future performance. Some information and statistical data herein has been obtained from sources we believe to be reliable but in no way are warranted by us as to their accuracy or completeness. These are Neptune’s views and as such this document is deemed to be impartial research. We do not undertake to advise you of any change to our views.


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. Christine Brightwell 11th July 2014 at 1:17 pm

    Oh dear. In the words of the song “Where have all the flowers gone?”, When will they ever learn, when will they ever learn?

Leave a comment