Under pressure from campaigners and opposition parties, the Government tabled an amendment to the Financial Claims and Guidance Bill giving it two options with regard to a ban on cold-calling. The first option was to table regulations by the end of June to implement a cold calling ban, and the second was to make a statement by the end of July explaining why the regulations had not been tabled. The government’s amendment (now Clause 21 of the Act: http://www.legislation.gov.uk/ukpga/2018/10/pdfs/ukpga_20180010_en.pdf ) says that before regulations could be brought into force they would have to be debated by both Houses of Parliament. With the Commons not sitting today. it is now impossible for the legislation to be in force in June. The Government is now expected to have to make a statement next month explaining the delay.
Baroness Altmann says: “The need for a ban is widely recognised. The sooner cold-calling for pensions is outlawed, the sooner people will be better protected against being scammed and losing their life savings.
“So many people have already suffered from such pension frauds – and they almost all start with a cold-call.
“Having worked so hard in the Lords stages of the Bill to get a proper ban on pensions cold-calling, only to then see the measures watered down significantly, it is really disappointing that even these weaker protections will not be put in place on time.
“Meanwhile, anyone who receives unsolicited approaches offering help with their pension – whether a call, text, or email – should steer well clear. Official or bona fide firms will not call you out of the blue and those friendly sales people could cost you much or all of your pension. I urge the Government to ensure these regulations are ready and enacted very quickly.”
Royal London head of pensions policy Steve Webb says: “Campaigners had been hoping that the vital final stage in implementing a cold-calling ban would have been completed by now. It is deeply disappointing that there is now going to be yet more delay. With every passing day yet more people are being scammed after a process which started with a cold call. We don’t want a statement from the Government telling us how difficult it is – we want action and action now.”
Aegon head of pensions Kate Smith says: “It’s been almost a year since the government confirmed its intention to introduce a ban on pensions cold calling. For every month that passes, more people’s pensions are at risk from well organised groups intent on separating people from their lifetime savings. The industry wants to see action and if the extra time is to be used for anything then it should be to maximise the effectiveness of the legislation and to supplement it urgently with a major awareness campaign on the risk of pension scams.”
AJ Bell senior analyst Tom Selby says:“We have been waiting almost two years for the Government to back up its tough talk on tackling pension scammers with action. It is therefore hugely disappointing that the cold-calling ban faces further delay as policymakers iron out as yet unspecified ‘technicalities’.
“Too many savers have already been fleeced out of their hard-earned retirement pots by scammers, with cold-calling one of the main tactics employed. The glacial pace of Government action on this is frankly shameful and increases the risk of millions of savers being targeted using this method.”
