Industry calls for pensions watchdog

While a number of organisations already exist to oversee regulated companies, more needs to be done to crack down on unregulated firms that prey on people's pensions.

Almost half a billion pounds was taken from pensions as a result of liberation scams in the first half of 2014. This led to multiple arrests, liberation websites being shut down and frozen scheme assets, but such scams continue to threaten people's retirement.

It recently required a joint effort from The Pensions Regulator, HMRC, The Pensions Advisory Service, Serious Organised Crime Agency, Action Fraud, Serious Fraud Office and the National Fraud Intelligence Bureau to launch the Scorpion campaign to raise awareness.

For consumers, it is too easy to fall victim to a scam and too difficult to seek recourse. The continuing gap in regulations risks people seeing pensions as confusing and with the potential to lose all of their money, instead of as the great savings vehicles with tax relief that they really are.

Jamie Smith-Thompson, managing director of Portal Financial, said:

"Portal Financial has been actively against pension liberation scams for years, and as a result of our campaigning Google now polices paid adverts from such companies on its searches. A pensions watchdog whose primary job is to keep people safe from liberation scams would be extremely worthwhile, especially in a post-freedoms market.

"We have been very supportive of the new pension changes, but it's important to be realistic and acknowledge that liberation companies will see the changes as a fresh opportunity to exploit people. The regulated market already has a number of effective organisations, but who is policing the unregulated? How many people need to be ripped off before action is taken?"