Protections to prevent pension transfers to scammers

New regulations which come into force on 30 November will protect pension scheme members from transferring their pension savings to scammers as pension trustees and scheme managers get new powers to intervene.

Where there are signs of fraud or methods frequently used by scammers trustees and scheme managers will be able to prevent a transfer request giving it a ‘red flag’. In other circumstances where fraud is suspected an ‘amber flag’ will pause a transfer until the scheme member can prove they have taken scam specific guidance from the Money and Pensions Service.

The government has committed to reviewing the new regulations within 18 months to ensure they remain as effective as possible in targeting the evolving methods used by scammers.

Welcoming the announcement Ian Bell head of pensions for RSM UK said: ‘This move puts the onus on the...