The Department for Work and Pensions (DWP) last month launched a consultation aiming to protect pension transfers from scammers. But firms have raised multiple concerns about the proposals.
Here, two experts share their thoughts on what is wrong and where the efforts should be focused instead.
‘Transfers aren’t the issue’
Andrew Tully is technical director at Canada Life
It is clear pension scams are extensive and target vulnerable people, so there should be widespread industry support for the DWP’s measures. However, the reaction has been mixed, to say the least. To understand why, it’s worthwhile walking through the proposals.
If a transfer is to a scheme the DWP believes presents a low scams risk, it can proceed without any further intervention. This includes transfers to public sector schemes, master-trusts and personal pension providers which have an insurer as part of their corporate group.
Where a transfer is not to one of these…