The below Parliamentary question was asked by Owen Smith on 2015-10-13.
To ask Mr Chancellor of the Exchequer, what assessment he has made of changes in the level of scam activity associated with pensions following the introduction of pensions freedoms.
Harriett Baldwin
Figures from Action Fraud, the UK’s national reporting centre for fraud and internet crime, show that there were 261 crime reports from 1st April to 30th August 2015 classified as Pension Liberation Fraud. The average number of reports per month has declined so far this financial year, with an average of 52 reports per month compared to an average of 79 crime reports for financial year 2014/2015.
However, it is too early to tell what impact the freedoms have had on prevalence of fraud. These figures relate to “reported fraud” only – figures taking account of “actual fraud” will take much longer to flow through.
Monitoring the market for scams and misselling is the responsibility of the regulators, the Financial Conduct Authority (FCA) and the Pensions Regulator. The FCA, in line with its remit to protect consumers and ensure markets function in consumers’ interests, has specifically committed to monitoring developments in the retirement income market closely and to take action where consumers are coming to harm or where the market is not operating competitively. The Government remains in close contact with the regulators, and other organisations such as industry trade bodies, on these issues.
Pension Wise, the Government’s free and impartial guidance service, also helps individuals understand how to spot and avoid scams. Where its users are at risk or have been scammed, they are referred to the appropriate organisations, such as Action Fraud.
