Retirement savers are warned to hang up on cold callers offering free pension reviews by the UK’s financial watchdog.
Signing up for a review and switching savings into one of their dodgy schemes could mean losing money, says the Financial Conduct Authority (FCA).
Their claims of helping retirement savers navigate a free government-backed money advice scheme is a scam, according to Tracey McDermott, director of enforcement and financial crime at the FCA.
Since Chancellor George Osborne announced a shake-up of how savers can take their pension cash in Budget 2014, the FCA says fraudsters have sent out a flood of cold calls, emails, letters and texts to try to encourage people to move their money to illicit schemes.
Bogus advice offer
The calls are a sham because the free face-to-face money advice offer from the government has not yet been introduced and is unlikely to be available before new pension laws come into force in April 2015.
The FCA, which is helping develop the guidance, says the details are not public and any one claiming to represent the scheme is not telling the truth.
“Anyone agreeing to a free review could lose everything and could end up with a significantly lower retirement income,” said an FCA spokesman.
Warnings about bogus advisers
The FCA has also issued these warnings about bogus firms posing as regulated financial advisers:
- Credit Clear Services Ltd t/a The Full Financial Review
Dealing with an unregulated firm
If you buy shares, save money or invest with an unregulated firm, you lose any protection offered by the Financial Ombudsman and the Financial Services Compensation Scheme. Broadly, you have no independent place to complain if the deal goes wrong and are unlikely to win any compensation.
Checking if a firm is regulated
Go to the Financial Services Register to check if a firm is regulated in the UK.
Reporting a suspected bogus adviser
Find out how to report unauthorised advisers on the FCA web site
