Pensions - Articles - Cutting off the source of funds should stop scammers

 “It is our long held view that cutting off the source of funds should stop scammers in their tracks. A member’s statutory right to a transfer has been a barrier to this. Dalriada supports this proposed change in the legislation which will allow trustees to prevent a transfer payment where it suspects a member is likely to be the victim of a scam.

 “The vast majority of transfers are, and will continue to be, to legitimate arrangements and in most cases administrators will not be required to go beyond step 1 in determining whether to permit a transfer. Generally, the proposed steps appear sensible and proportionate and the DWP has balanced the need to protect members whilst avoiding introducing significant additional administration.

 “Given this, we don’t hold with the suggestion that large numbers of transfers will be blocked or even unduly delayed. We acknowledge that transfers to SIPPs, not offered by insurers, could become more complex but expect this to be addressed through the consultation.

 “Whilst it will not be mandatory to comply with the checks, we expect reputable providers and administrators to have already updated their processes to include due diligence around transfers and to sign up to TPR’s scams pledge.

 “This change, coupled with greater and better coordinated action against the perpetrators, represents significant progress in the battle against pension scams.”