Despite welcoming the announcement as “a step in the right direction”, James Walsh of the Pensions and Lifetime Savings Association (PLSA) said: “We are still a long way from a cold calling ban actually taking effect”.
Walsh, who is the PLSA’s policy lead for engagement, EU and regulation, added: “With the vast majority of defined benefit/hybrid schemes reporting transfer requests and almost a third rejecting some due to due diligence concerns, we feel that there is more that needs to be done.
“We would like to see the government take a more ambitious approach by introducing an authorisation regime for pension schemes. This would mean only allowing transfers to schemes recognised as legitimate and trustworthy. Any small scheme (SSAS) that wishes to receive transfers would have to include an independent trustee on its trustee board with a duty to ‘blow the whistle’ on scam-related activity.
“Alongside the new regulatory regime for master trusts and existing FCA regulation of many providers, this would be a big step towards shutting the scammers out of pensions.”