Select committee: Work and Pensions Committee
Recommendation 13
Fifth report: Protecting pension savers—five years on from the pension freedoms: Pension scams
Published 28 Mar 2021
Paragraph 52
Addressed to Department for Work and Pensions
Work and Pensions Committee Protecting pension savers – five years on from the pension freedoms: Pension scams All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
Pension scammers do not confine themselves to the borders of the UK. Many of the cases we heard about took place across several countries, making enforcement more complicated. We note that since the introduction of a potential 25% charge on many qualifying recognised overseas pension schemes transfers in March 2017, there has been a significant fall in the number of transfers to these schemes, which have been a vehicle for scams in the past. But there remain problems with unscrupulous— and often unregulated—advisers based outside the UK. Cross-border co-operation remains important, as the involvement of firms or investments based abroad is a common feature of many scams. We recommend that the Money and Pensions Service should run—and report on—a programme to encourage eligible expatriates to access the free guidance it offers through its new consumer facing brand MoneyHelper when it launches in June 2021.
From: Work and Pensions Committee, Fifth report: Protecting pension savers—five years on from the pension freedoms: Pension scams (HC 648), paragraph 52, 28 March 2021
Government response
The government responded to the whole report on 6 July 2021 (deadline 28 May 2021).
Summary written by Accountability Index from the government's response. It is not the government's own words.The Government "notes" the Committee's report, says it takes the recommendations "very seriously", and states it has "agreed with many of the recommendations from the outset" while it will "continue to look closely at the remaining recommendations".
- On the red and amber flag system for pension transfers, the Government agrees that the policy should be reviewed and that the flags' suitability forms part of that review, but "cannot" guarantee any legislative changes could be made "during this Parliament".
- It does not agree that inclusion on the FCA warning list should itself be a red flag, saying the Pension Schemes Act 2021 does not give powers "to use a third parties list or determination".
- It declines additional reporting by the City of London Police to Parliament on Action Fraud, saying it is "unnecessary" and oversight "should remain with the Government".
- The Government is "committed to publishing a comprehensive Fraud Action Plan after this year's Spending Review", but "cannot commit" to publishing details of its coordination with the Treasury.