RSM welcomes ban on pensions cold calling

Commenting ahead of the ban on pensions cold calling which comes into force today (9 January), Ian Bell, RSM's head of pensions said: 

'The latest data from Action Fraud suggests that victims of pension fraud lose an average of £91,000 each, in some cases wiping out their life savings and leaving them facing retirement with a limited income.

'Cold calling is the most common method used to initiate pension fraud so it's a mystery why it's taken quite so long for the Government to ban it.

'Nevertheless, today's ban is extremely welcome as it sends a very clear message that cold calling is not only unacceptable but also unlawful.

'The Pensions Regulator and the Financial Conduct Authority will now need to keep up their efforts to build awareness among scheme members that unexpected pension offers whether made online, on social media or over the phone should be rejected outright.

'We also need to see effective enforcement action from the regulators and the police to deter others who may be tempted to target pensions scheme members' lifesavings.

'This ban won't solve the scourge of pensions fraud overnight. Indeed, risks will remain from overseas operators who will be outside the scope, but it is a step in the right direction. However, everyone in the pensions industry will need to be vigilant and respond to new threats which will undoubtedly emerge.'