Legal & General (L&G) has increased protection against pension liberation outfits after The Pensions Regulator (TPR) and other bodies highlighted the plight of people taken in by such schemes.
The provider said it had put new procedures in place in the way it administers pension transfer requests, which it said would help pick up on any applications from a company suspected as a pension liberation firm.
L&G pensions strategy director Adrian Boulding explained: "We have put in place a series of due diligence tests that will enable us to expose the schemes we have concerns about.
"We will be asking for a lot more information and evidence from these people before we release our customers' money to them. And unless they provide us with 100% satisfaction, we will be reporting any deficiencies we expose back to our customers."
He added the vast majority of transfer requests were to long-established schemes which are known to the business, and these would not be affected by the changes.
"But, where we have concerns, and this is just a small minority of cases, the law allows us up to six months to make investigations. So we can ask a series of questions of anyone we think is perpetrating fraudulent pension liberation.
"In cases of doubt, it's better to delay than for a customer to risk losing most of their life savings."
Boulding warned many liberation schemes involve very high changes which are deducted from the cash granted, and members can also face up to a 55% charge from HM Revenue & Customs.
L&G is to send out TPR information packs to customers warning about the problems associated with pension liberation.
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