At present pension scheme trustees have little scope to refuse a member’s request to transfer their pension savings to another scheme, even where there are significant concerns that the receiving scheme might be a scam. Since 2015, about £10 billion has been lost to pension scams, according to the Pension Scams Industry Group, whilst Action Fraud recently warned savers to remain vigilant, estimating that £1.8 million has already been lost to pensions fraud in the first three months of this year.

On 14 May 2021 the Department for Work and Pensions (DWP) published a consultation on draft regulations aimed at protecting pension scheme members from pension scams by requiring the trustees and managers of occupational and personal pension schemes to ensure that at least one of the following four conditions is satisfied before actioning a member’s transfer request.

  • First Condition: This condition would be met if the trustees or managers identified that…

Read more…