However, it is important to note that not all red flag incidents are scams; in many cases, a pension scheme may simply be concerned that a reported incident meets one or more of the red flag criteria laid out in the PSIG Code of Practice and will have reported it to err on the safe side.
Revised Code of Good Practice for 2019
The latest revised Code of Good Practice (Version 2.1 – published 10 June 2019)** highlights ten major changes to the June 2018 version. These include:
- A ban on cold-calling
- Details of the FCA’s letter on managing the risks of defined benefit to defined contribution transfers
- Warnings on the risks and practices of claims management companies
Margaret Snowdon OBE, chair of PSIG, commented, “We’ve been making good progress in our fight against pension scams, with many millions saved from the clutches of scammers through our work.” ***
She added that scammers are cunning and will continue to develop their techniques, hence the reason why the Code of Good Practice must continue to be updated.
Snowden stated that to end the problem of scams and scammers the introduction of new legislation is required, but, until this time, the voluntary code is published to offer guidance and tools for pension providers and help protect scheme members from suspicious activity.
Advice for Pension Members
If you are concerned about potential pension transfer scam activity, you can seek help from one or more of the following organisations:
- Your pension scheme administrators
- The ScamSmart website
- The Money and Pensions Service
- Citizens Advice Bureau
Expat Retirement Transfer Advice from Blacktower
Blacktower Financial Management specialises in helping our clients protect and grow their wealth while also taking full account of their unique cross-border financial interests.
Our expertise extends to assisting with all aspects of expat retirement transfers and retirement planning to help our clients optimise their savings and investments in line with their long-term financial interests and cashflow needs.
We are fully regulated and licensed, and believe that an expat retirement transfer should only ever be undertaken if it is suitable for the client’s needs and circumstances. For more information, contact your local office today.
* https://www.xpsgroup.com/news-and-views/xps-identify-scam-activity-warning-signs-on-73m-of-pension-savings/ Accessed 17/06/19
** https://www.blacktowerfm.com/images/docs/Combating-Pension-Scams-Code-of-Good-Practice-2019.pdf Accessed 20-06-19
*** https://www.ftadviser.com/pensions/2019/06/10/new-pension-scams-code-to-include-warning-on-cmcs/ Accessed 21-06-19
Making sure you have enough money for retirement is a crucial part of your financial planning process. But some workers may struggle to save more than others.
Are you yet to draw on your pension and have one or more dormant, frozen pension pots from when you were employed or self-employed? If you have had a number of jobs during your career, you could have a series of separate pension plans which, while individually may not add up to much, you are relying on to provide you with an income during your retirement.