A new code to combat pension scams has been published, providing a good practice guide for trustees, providers and administrators.

The Pensions Scams Industry Group (PSIG) launched Combating Pension Scams – A Code of Good Practice today, 22 June, with a particular focus on safeguarding vulnerable customers, improving communication between the scheme and members and recommending members are directed to The Pensions Advisory Service (TPAS) for impartial guidance.

The code is an updated version of advice launched in 2015, aimed at tackling the “new world of scamming”.

PSIG chair Margaret Snowden, said: “The growth in international self-invested personal pensions and Qualifying Recognised Overseas Pension Schemes means that the scamming landscape has changed significantly in recent years. This, coupled with more members wanting to exercise pension freedoms and ever more sophisticated scamming tactics means we need to be able to respond effectively.

“Whilst we await regulation to help stop cold calls and make it tougher to transfer, the industry needs tools to help pinpoint dubious arrangements. Scammers spend time grooming their victims, so we encourage schemes to speak with members to fully understand their situation and refer insistent customers to TPAS, who can explain the risks of scamming from an impartial standpoint.”

The code will also give guidance on how schemes can talk to transferring members in order to collect information, make it easier for schemes to report suspected scams and in-depth case studies.

TPAS chief executive, Michelle Cracknell, added: “The scourge of pension scams continue with the scammers taking advantage of people being disconnected and not fully understanding their pensions. The types of scams continually evolve with many being legal, making it even harder to protect the customers.”

The code will also delver greater clarity on member responsibility “where decisions have been made contrary to due warning”.

Pension and Lifetime Savings Association policy lead for engagement, EU & regulation, said: “This new code is a crucial step in protecting savers from high risk or fraudulent investments that could lead to them losing their hard-earned pension savings

“Since the pension freedoms came into effect, there has been an increase in the number of people being contacted by fraudsters and, with the scammers becoming increasingly sophisticated, it’s vital that the industry raises its game in response.”

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