Don't Be Caught in a Pension Scam

23rd November 2018 By Alireza Nurbakhsh

Scams of all shapes and sizes are becoming depressingly frequent and the Financial Conduct Authority (FCA) has warned against the rising tide of pensions scams that leave people facing years of misery in retirement as a result of passing their pension funds across to scammers.

According to the FCA the average sum lost is more than £90,000 and its response has been a campaign to raise awareness.

The theft of a pension fund often starts with an offer to have a ‘free pension review’  by a pension adviser, which is followed by an offer to move the pension fund into a scheme offering a better rate of return than the present one. The presentations are often very plausible and accompanied by convincing documentation.

The scammers trawl for people of the right age and will usually make an unsolicited contact (a ‘cold call’). The proposals made offer better than average returns – often ostensibly in overseas markets or enterprises offering the promise of better profits than in regulated schemes in the UK. Offering to ‘unlock’ money from the pension fund, the approach often emphasises the need to act quickly before the opportunity is lost.

In many cases, considerable time and effort is spent building up trust between the victim and the scammer before the latter strikes.

Once the pension fund is handed over, the pension adviser and the money both disappear.

The FCA recommends only taking financial advice from an authorised person, who is on the FCA register. If you invest with any entity that is not authorised by the FCA and suffer a loss, you are very unlikely indeed to see any of your money returned.

Secondly, do not act on calls, emails or social media contact from firms or people you do not know offering financial advice.

Never allow yourself to be rushed or pressured into making a decision and, if you have any doubts at all, get a second opinion from a person you know to be authorised by the FCA.

Source: Concious

Latest News

Widow Pays for Delay in Seeking Provision From Her Husband's Estate

18th September, 2019 By Alireza Nurbakhsh

If you feel that you have suffered a wrong of any kind, a delay in taking legal action can put paid to your chances of obtaining justice. A widow who was left nothing in her deceased husband's will found that out to her cost when her hopes of obtaining reasonable financial provision from his estate were dashed. The couple had been married for 13 years but had separated about a year before the husband died. The wife had lodged a divorce petition, but those proceedings were interrupted by her husband's...

Don't Even Think About Doing a Property Deal Without Legal Advice

12th September, 2019 By Alireza Nurbakhsh

Property purchases are, for the majority of people, the highest-value deals they ever enter into and that is why they should never be undertaken in haste or without expert legal advice. A case in which an amateurish, home-made agreement led to years of costly strife between family members illustrates the point effectively. Due to concerns that the opportunity to purchase a property might otherwise be lost, the sale agreement was created in a hurry, without the assistance of a solicitor. It stated that a woman had put £150,000 towards the...

Pension Scheme That Failed to Consider Wife's Claim Called to Account

9th September, 2019 By Alireza Nurbakhsh

It is usual for occupational pension schemes to allow the spouse or partner of a scheme member to receive a reduced pension in the event that the member predeceases them. Normally, the appropriate beneficiary is set out in the scheme rules. With defined contribution schemes, such as Self-Invested Personal Pensions, the owner of the pension fund can choose to whom their pension pot is left by lodging a statement of choice with the pension scheme trustees. This latter arrangement can make pension scheme holdings useful tools in Inheritance Tax...

Divorced Overseas? English Family Judges Can Still Help You!

6th September, 2019 By Alireza Nurbakhsh

If you have been divorced abroad but are habitually resident in this country, English family judges have the power to ensure that you receive a fair share of the marital assets. In a case on point, the High Court awarded a woman whose marriage was dissolved in Russia, but who had settled in London, a financial settlement of £5 million. The middle-aged former couple, both Russian nationals, had three children during their 22-year marriage. From very modest beginnings, the husband had achieved great things in business and they had enjoyed...