The Regulator has launched an initiative urging the pensions industry to publicly pledge to combat pension scams.
The Regulator, the Financial Conduct Authority (FCA) and the Government have all made it clear in recent years that those responsible for running pension schemes have a part to play in protecting their members from scams.
The Regulator has now launched an initiative calling on the pensions industry to publicly pledge to combat pension scams (details are on its website).
The pledge
The pledge sets out the minimum steps that the Regulator expects trustees to take to protect members, and it follows the Pensions Scams Industry Group (PSIG) Code of Good Practice.
Those that make the pledge will agree to:
Once trustees have committed to making the pledge, the Regulator expects them to take action (if not already in place) to ensure that the principles are met. Those that do this will be able to self-certify to the Regulator that they have put in place the practices outlined in the pledge.
There is a new Trustee Toolkit module that outlines the processes that all trustees and providers are expected to follow to keep savers safe.
Anyone involved with the transfer process, including trustees, are expected to complete this module.
The Regulator currently has no plans to publish the list of those that have signed up but may look to do so in the future. This is because the pledge is viewed as a public commitment and it would aim to demonstrate that schemes are continuing to put their members first and are ensuring that they are meeting expectations.
Capita comment
Many schemes already comply with the latest version of the PSIG’s ‘Combating pension scams – a code of good practice’ and therefore arguably already go further than required under current legislation. As the commitments for taking the pledge build on this important document, we’re not witnessing a new direction of travel but it does let members and potential scammers know that the scheme is on the look-out for red flags that may signal a pension scam.
Even if schemes don’t decide to make the pledge, its six steps have the scope to make a positive impact for members and completing the new module in the Trustee Toolkit will provide trustees with further education.