11 Nov 2021
Leading audit, tax and consulting firm RSM UK has welcomed the DWP’s new regulations to protect pension scheme members from transferring their pension savings to scammers. The new regulations, which come into force from 30 November 2021, will give pension scheme trustees increased powers to prevent pensioners from transferring funds out to potentially fraudulent investments.
Ian Bell, Head of Pensions for RSM UK said: ‘We welcome this much called for and long overdue announcement which will help protect vulnerable pension scheme members who have saved long and hard from losing their pension pots to scammers. This move puts the onus on the trustees to develop their systems to raise concerns and even block suspicious transfers of pension funds where fraud is suspected. Previously, pension trustees were powerless to prevent such fraudulent transactions where a member held a statutory right to transfer their funds, and the requirement was to transfer funds within strict timescales. Under the new rules, trustees will be able to refer members to the Money and Pensions Service for further advice, which is a welcome opportunity for trustees to do the right thing and protect their scheme members.’