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You can find the current article at its original source at https://www.theguardian.com/uk-news/2016/nov/19/pension-cold-calling-banned-rise-scams-autumn-statement
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| Pension cold calling to be banned after rise in scams Pension cold calling to be banned after rise in scams | |
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| A ban on cold calling to sell pension products will be introduced in next week’s autumn statement, after changes brought in by former chancellor George Osborne led to a surge in scammers tricking people out of their retirement savings. | A ban on cold calling to sell pension products will be introduced in next week’s autumn statement, after changes brought in by former chancellor George Osborne led to a surge in scammers tricking people out of their retirement savings. |
| The chancellor, Philip Hammond, will use his first budget statement to announce the new rules, with the intention of ending approximately 250m scam calls a year leading to pensions fraud of almost £19m in 2015. | The chancellor, Philip Hammond, will use his first budget statement to announce the new rules, with the intention of ending approximately 250m scam calls a year leading to pensions fraud of almost £19m in 2015. |
| There has been a surge of fraudulent cold calling targeting pensioners since Osborne’s reforms of the pension system to make it easier for people to withdraw sums without penalty. | There has been a surge of fraudulent cold calling targeting pensioners since Osborne’s reforms of the pension system to make it easier for people to withdraw sums without penalty. |
| The scams tend to be presented as unique investment opportunities, such as putting your pension pot into a new hotel in an exotic location or supposedly ethical projects that promise huge returns. | The scams tend to be presented as unique investment opportunities, such as putting your pension pot into a new hotel in an exotic location or supposedly ethical projects that promise huge returns. |
| Under the changes due to be announced by Hammond, all calls relating to pension investments where a business has no existing relationship with the individual will be forbidden. Similar rules already cover cold calls relating to mortgages. | Under the changes due to be announced by Hammond, all calls relating to pension investments where a business has no existing relationship with the individual will be forbidden. Similar rules already cover cold calls relating to mortgages. |
| Companies flouting the ban could face fines of up to £500,000 from the information commissioner, although the watchdog does not have powers to tackle firms operating outside the UK. | Companies flouting the ban could face fines of up to £500,000 from the information commissioner, although the watchdog does not have powers to tackle firms operating outside the UK. |
| Pension firms will be given more powers to block suspicious transfers, preventing people’s life savings from being transferred without any checks. The rules will also stop small self-administered schemes from being set up using a dormant company as the sponsoring employer. | Pension firms will be given more powers to block suspicious transfers, preventing people’s life savings from being transferred without any checks. The rules will also stop small self-administered schemes from being set up using a dormant company as the sponsoring employer. |
| Some research has suggested that scammers could be behind as many as one in 10 pension transfer requests. | Some research has suggested that scammers could be behind as many as one in 10 pension transfer requests. |
| Hammond appears to be acting after a petition signed by thousands of people, including former pensions ministers Ros Altmann and Steve Webb, Martin Lewis of the website Money Saving Expert, and a number of independent financial advisers, requested pension cold calling be made illegal. | Hammond appears to be acting after a petition signed by thousands of people, including former pensions ministers Ros Altmann and Steve Webb, Martin Lewis of the website Money Saving Expert, and a number of independent financial advisers, requested pension cold calling be made illegal. |
| Michelle Cracknell, head of the government’s Pensions Advisory Service helpline, also called for a ban, saying every customer should refuse to take pension cold calls. | Michelle Cracknell, head of the government’s Pensions Advisory Service helpline, also called for a ban, saying every customer should refuse to take pension cold calls. |