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Why did the government miss the pension cold-calling ban?

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Recently, we reported that the government plans to introduce a pension cold-calling ban.

However, now it seems that the government has not met its own deadline for the action. There appears to be no planned deadline for the Financial Claims and Guidance Bill.

Pension cold calls are an issue of great importance for many potentially vulnerable people. It’s imperative that measures are put into place as soon as possible to ensure these types of calls are banned.

A recap on the pension cold-calling ban

The pensions cold-calling ban is designed to put an end to unsolicited calls encouraging people to move their life savings into illegitimate or unregulated pensions schemes, often putting their funds in danger.

The ban will cover text messages, emails and other direct communications in addition to traditional telephone cold-calling, and applies to all firms that do not already have a connection with the customer they are contacting.

Is the Financial Guidance and Claims Bill enough?

While the new bill is definitely a positive step towards protecting people’s money, there are still potential loopholes, especially when it comes to unregulated ‘introducers’ conducting face-to-face marketing.

What will happen now?

The government will launch a consultation instead of a ban. They claim this is due to the “complexity” of the issue. John Glen, Economic Secretary to the Treasury and Minister for the City is responsible for this. He said: “Pensions scams can have devastating consequences and cold calling is the most common method used to initiate pensions scams, so the government has taken the time to ensure the ban works for consumers.”

Mr Glen also shared that the consultation will include a draft pension cold-calling regulation.

Top tips to avoid a pension scam

While Government action appears less certain, we’ve compiled a few handy tips to help people safeguard their pension pots:

  • If it sounds too good to be true, it probably is. Exercise caution.
  • Be wary of anything that offers a high guaranteed return, especially if it’s an investment in overseas assets, or in something illiquid such as car parking spaces. Even if they are genuine, they’re higher risk and probably not right for your pension.
  • Investigate unexpected contact – if somebody gets in touch out of the blue then you might have cause for concern
  • Avoid free pension reviews – these are often the front for a scam or unscrupulous provider

If you think you may have been mis-sold a pension investment either through pressure selling, cold-calling or misleading advice then you could be eligible for compensation. Our team of legal experts are here to give you help and advice with mis-selling cases; simply give us a call or use our contact form to get in touch today.