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Pension Cold Calling Ban Takes Effect

Pension Cold Calling Ban Takes Effect

A BBC News report provides an overview of the ban on nuisance calls about Pensions coming into force, but urges people to still be on their guard.

Cold-calling has been used by fraudsters trying to steal life savings or persuade people to invest in high-risk schemes, with estimates by Citizens Advice of 10.9 million unsolicited pension calls and messages being made a year. Any form to be in breach of the rules will face fines of up to £500,000, however, experts have expressed concerns that fraudsters may ignore the ban.

Although restrictions on unsolicited texts and emails about Pensions are already in place, but the Government has faced criticism over the time taken to introduce the ban, which was first announced nearly two years ago.

How do the fraudsters operate?

Often starting with an unexpected call, text, social media or email approach, scammers offer a free pension review or a way to make attractive returns on pension savings. The money is then simply stolen or transferred into a high-risk scheme completely inappropriate for retirement savings. Many offer eye-catching returns or high-rolling investments in hotels or green energy schemes that never materialise, or instead lead to losses.

Research by the Financial Conduct Authority (FCA) shows pension scam victims lose an average of £91,000 each.

How do the new rules work?

Calls involving Mortgages are already banned and the new rules now prohibit cold-calling in relation to Pensions. There are exceptions including:

  • Callers authorised by the FCA
  • The Trustee or Manager of an Occupational or Personal Pension Scheme and the recipient of the call has given consent or has an existing relationship with the caller

Read the full BBC New Report Here