IFAs take stand against pension liberation schemes

The SIPP provider, which has been an outspoken critic of pensions liberation schemes, found that almost two thirds (64%) of IFAs reported an increased incidence of clients being approached by the schemes.

Yet a huge majority of the advisers polled made clear their dim view of the practice, with 86% – six out of seven – IFAs agreeing that pension / SIPP providers should refuse to transfer out funds if they suspect a case of pension liberation.

Liberty SIPP’s managing director, John Fox, made a stand over the summer when he pledged to refuse to transfer any customer’s pension fund into a scheme he suspected of pension liberation, with the challenge “if you don’t like it, sue us.” To date, not one client has done so.

John Fox, Managing Director, Liberty SIPP, commented:

"It’s hugely encouraging to see that the vast majority of IFAs are keen to take a stand against pension liberation schemes. This is a shot across the bows of would-be pension liberators and sends out a clear message: stay away.

“Make no mistake, pension liberation firms are a menace. They prey on savers who have worked hard to put money aside for later in life, often buying up marketing lists and financial data in order to target vulnerable people with financial problems. They’re unscrupulous rip-off merchants who operate at the margins of the law.

“We’ve produced a Pensions Liberation Survival Guide, which we offer free to IFAs and their clients. It includes tips on how to spot the conmen behind the scam – and explains ways to put a stop to the rip-off schemes for savers already caught in the net.”