Contact

News & Insights

Pension freedom or Pension Nightmare

Pension freedom provides opportunities. But it also increases the danger of being hoodwinked by fraudsters eager to get their hands on your lifetime savings.

Financial regulators have issued what they consider essential fraud prevention advice for retirees ahead of sweeping pension reforms next month.

They should reject cold calls, hang up immediately, don’t get drawn into a conversation the people calling you are professional cold callers who know how to entice you into their schemes. 

The FCA highlights the following signs that should put people on the alert:

* People offering high risk investments or scams will often cold call, but FCA-regulated firms are very unlikely to do this so the safest thing to do is hang up.

* Fraudsters might make contact unexpectedly about an investment opportunity but pretend they aren’t cold calling you, by referring to a brochure or an email that they have sent you. They might make a cold call, email, or follow up call after you receive a promotional brochure out of the blue.

* Another warning signal is if someone applies pressure to invest in a time-limited offer, for example by offering a bonus or discount if you invest before a set date, or by saying that the opportunity is only available for a short period.

* A dodgy firm might downplay the risks to your money, for example by talking about how you will own actual assets you may sell yourself if the investment doesn’t work as expected, or by using legal jargon to suggest the investment is very safe.

* Beware of promises of tempting returns that sound too good to be true, for example by offering much better interest rates than those offered elsewhere.

* Fraudsters might call you repeatedly and stay on the phone a long time. They could say that they are only making the offer available to you, or even ask you to not tell anyone else about the opportunity.

The FCA’s other tips are to check its warning list of companies running scams or operating without authorisation, and to get impartial help from a financial adviser unconnected to the firm that contacted you.

Article written by Christina Brady, Regional Manager Costa Blanca

 

Other News

Suitability Key to Expat Retirement Transfers

YesExpat retirement transfers have the potential to play a critical, and beneficial, part of an expat’s financial planning. However, this is only if the process is undertaken in a considered fashion with reliable, regulated and trustworthy advice that investigates all of the options, including the possibility of a QROPS or SIPPs transfer.

The Financial Conduct Authority (FCA) knows this better than anybody and has recently flagged its concern that too many firms are providing unsuitable pension transfer advice. This followed the publishing of a report in which the FCA found less than half of all pension transfer advice was fit for purpose.

Read More

FCA and TPR Join Forces to Improve Outcomes

This month the two main pensions regulatory bodies, the Financial Conduct Authority (FCA) and The Pensions Regulator (TPR), announced that they have joined forces to improve the prospects of retirees and pension savers. Previously, the two have worked together in an attempt to protect savers from pension scams.

The fact that the two regulators are thinking big by developing a strategy for the next five to ten years is good news as it gives some time for objectives to be fully understood and reached, and the published strategy will hopefully lead to greater numbers of savers having sufficient income once they reach retirement.

Initially, the two regulators oversaw a comprehensive review of the consumer pensions experience – particularly regarding how and why savers make the decisions they do. The published strategy now seeks to encourage pension providers to increase value for money, with an enforcement of standards and principles amongst the pension industry a key component of this aim.

Read More

Select your country

Please select your country of residence so we can provide you with the most relevant information:

You are currently viewing the Blacktower Financial Management EU website.

You may be looking for the Blacktower United States website.

Blacktower United States > X Stay on this site

Or choose your country.