The Pension Scams Industry Group has published a revised code of good practice for trustees, providers and administrators in a bid to combat this growing problem.
This new set of voluntary guidelines aims to help those in the industry identify pension scams and understand the necessary steps they can take to protect members. It coincides with the launch of the new consumer-focused Scams Awareness campaign.
PSIG chair, Margaret Snowdon says: “We’ve been making good progress in our fight against pension scams, with many millions of pounds saved from the clutches of scammers through our work.
“But scammers evolve their techniques, which is why we continue to develop our code.”
Sh says this new code provides essential guidance and tools to help those in the industry identify and protect members from suspicious activity.
“The human cost of pension scams is huge, so we must all do our utmost to prevent them. We therefore urge trustees and providers to review and adapt their due diligence processes to reflect this updated code.”
The PSIG remains a voluntary body. Snowdon says should would like to see legislation enacted to address this issue.
Minister for pensions and financial inclusion, Guy Opperman says: “Pension scams are callous crimes that rob people who have done the right thing and saved for their future and the retirement they deserve. I’m determined to stamp them out. There’s good work already going on – the FCA’s scams smart campaign stopped £33m falling into crooks’ hands last year alone.
“But we need to do more and this new code will help pension trustees keep pace with this evolving threat and protect people from these wolves in sheep’s clothing. It is essential reading for all those working in the industry.”
The Pension Regulator’s executive director for frontline regulation Nicola Parish adds: “The pensions industry plays a vital role in the fight against scams by stopping suspicious transfers and alerting regulators and law enforcement agencies to fraudulent activity so we can take action.
“The updated code will allow providers to more easily understand how they can help to prevent savers losing their funds to criminals.”
The updated code reflects upon the developments and changes that have affected the industry over the last year, and revises guidelines set out in June 2018.