Progress on pension scam prevention is being made but criminals “always have their eye on the next opportunity”, The Pensions Regulator (TPR) has warned.
Speaking at the Association of Member-Directed Pension Schemes conference on 22 May, TPR’s Anthony Raymond said it was a big achievement to have the government, regulators, Work and Pensions Committee and wider industry “singing from the same hymn sheet” but added it was essential to keep on the front foot.
Raymond, the watchdog’s acting executive director of regulatory policy and general counsel, said: “There is no point trying to sugar coat it, the damage is done at the moment the pension is transferred into the unknown.
“However, progress is being made in policy and public appreciation of scams but vigilance is key.”
Raymond said the regulator welcomed the recent ban on pension cold-calling but also said it was important for the public to be aware of the risks themselves.
He also cited the watchdog’s recent success in a High Court action which resulted in four fraudsters – who ran a series of scam pension schemes – being ordered to repay £13.7m which they took from 245 victims between 2012 and 2014. He said the case had been referred to the Director of Public Prosecutions.
David Austin, Susan Dalton, Alan Barratt and Julian Hanson were ordered to repay the cash in the landmark High Court judgement.
Judge Mark Pelling ruled that Austin had been the “mastermind” but all four defendants had acted dishonestly. The judge also ordered that the defendants must pay the costs of TPR and Dalriada, the independent trustee appointed by the regulator, on an indemnity basis.
Raymond said the ruling “sent a clear message” that it would take all necessary action to target pension scammers.
He added it “paved the way” for pension scammer’s assets to be seized and used to compensate victims.