Strict financial advice rules leave pension savers open to 'ingenious' scammers

Trustees fear breaking the rules

clock • 2 min read

Strict rules which prohibit pension schemes from giving financial advice are letting scammers get close to members to perpetrate fraud, according to industry experts.

Speaking today (14 October) at the Pensions and Lifetime Savings Association's (PLSA) virtual conference, Work and Pensions Committee (WPC) chairman Stephen Timms and Pensions Administration Standards Association president Margaret Snowdon revealed the true scale of the pensions scam problem remains unknown due to the increasingly sophisticated tactics used. During a panel discussion, Snowdon said: "The scammers have an advantage because they can get close to members and are friendly and helpful while they steal. We are too afraid of breaching financial advice rules that we keep our dist...

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