Pension cold calling ban coming sooner than expected

Pension cold calling ban coming sooner than expected

The UK government has accepted calls to introduce a new clause in the Financial Guidance and Claims Bill and new regulation that will bring a ban on pension cold calling into law much more quickly than was previously proposed.

In response to the Work and Pensions Committee’s recommendations issued in December, the government said the current clause dedicated to the ban on pension cold calling is “flawed” because it will not deal with the problem quickly enough, nor does it specify how a ban would be enforced.

The Work and Pensions Committee said the government should use the Financial Guidance and Claims Bill to introduce a ban on pension cold calling, through a new clause requiring one to be implemented by June 2018 but the details set out in regulations so that outstanding issues could be resolved without being tied to a lengthy parliamentary process.

Agreeing in its response, the government said that it “will continue to work swiftly to implement a pension cold calling ban by tabling a workable amendment to the Financial Guidance and Claims Bill, and then making regulations to introduce the ban”.

James Walsh, policy lead for engagement, the EU and regulation at the Pensions and Lifetime Savings Association, commented: “We are pleased to see that the government has chosen to move more quickly on tackling pensions scams and this announcement is a useful step forward.”

“However, while the cold calling ban is welcome, it is not a water-tight solution. Some scammers will still work to find a way around legislation by—for example—calling from overseas. We look forward to continuing to work closely with government to tackle this issue.”

Categories: News, UK Pensions

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