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Pension transfers and scams: what should trustees do?

16 September 2018

Pension scammers are becoming ever more sophisticated in their methods of parting scheme members from their pension funds, learning how to stay (just) on the right side of the law and to avoid breaching requirements of financial services legislation. Following recent determinations by the Pensions Ombudsman, it is clear that trustees are expected not only to:

  • determine whether the member actually has a right to transfer to the proposed receiving arrangement (which may be complicated enough); but also to
  • investigate receiving schemes in considerable detail and ensure that members are appropriately warned of the dangers of pension scams.

Even where the member has a right to a transfer value, the trustees may be held liable (for considerable sums) if they have committed maladministration in failing properly to investigate the receiving scheme and give appropriate warnings to members.

This note considers the current state of play in relation to pension scams and sets out practical steps which trustees can take to protect both themselves and their members.

Click here to read the full briefing.

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