Pension Scams

Baroness Sherlock Excerpts

Wednesday 14th October 2020 Lords Chamber

[Baroness Stedman-Scott (Con)]

I take my noble friend’s point. The contribution that he has made just heightens the need for us to have more dialogue on this with the Minister for Pensions. However, as I have already said, the Government are taking further legislative action through the Pension Schemes Bill to enable regulations to be made prescribing conditions that, if not met, will limit an individual’s statutory right to transfer.

[Baroness Sherlock (Lab) [V]]

My Lords, the FCA acknowledges the increasing role of online platforms, including social media, in promoting harmful information to consumers, including from pension scammers. However, the cold-calling ban that came into effect last year does not cover online activity, and scammers can get around the ban by first building relationships with consumers so that they then consent to a cold call. How will the Government update the law to keep pace with this very fast-moving digital environment, since it is clearly increasing consumer vulnerability to scams?

[Baroness Stedman-Scott (Con)]

I can confirm that the Government are well aware of this issue. I referred earlier to Project Bloom, which brings together government departments, regulators, enforcement agencies and industry representatives to share information and co-ordinate actions that will deal with situations such as this. I can confirm that we, particularly the Department for Digital, Culture, Media and Sport, are already engaging with technology companies.