Private pensions cold calling, including emails and text messages, is to be banned as part of the government's new measures against pension scammers.

The measures will also include a tightening of HMRC rules to stop scammers opening fraudulent pension schemes, and tougher actions to help prevent the transfer of money from occupational pension schemes into fraudulent ones.

Scammers will also be tackled by ensuring that only active companies that produce regular, up-to-date accounts, can register pension schemes.

Limiting transfers of pension pots from one occupational scheme to another will mean trustees must check their receiving scheme is regulated by the Financial Conduct Authority, or has an active employment link with the individual, or is an authorised master trust.

The announcement comes as new figures show almost £5 million was obtained by pension scammers in the first five months of 2017.

It is estimated that £43 million has also been unlawfully obtained by scammers since April 2014, with those targeted having lost an average of nearly £15,000, as scammers try to encourage savers to part with their money with false promises of low-risk, high-return investment opportunities.

Minister for Pensions and Financial Inclusion, Guy Opperman, said the figures highlight the extent to which savings are being targeted.

He said: "People's savings are being targeted and stolen through elaborate hoaxes – leaving them with little opportunity to build up their savings again, which is why we are introducing tough new measures for those who scam."

"If people have saved for a private pension, we want to protect them - this is the biggest lifesaving that individuals normally make over many years of hard work so by tackling scammers, people should know that cold calling, apart from exceptional circumstances, is banned."

The cold calling ban will be enforced by the Information Commissioner's Office (ICO).

James Walsh, policy lead: engagement, EU and regulation, at the Pensions and Lifetime Savings Association (PLSA) said while the measures are a "step in the right direction", the government needs to do even more and to do it quickly.

He said: "People are at risk of losing their pension savings to scammers and we need a clear timetable from government on when it will implement key elements of its proposals - we need more urgency."

The PLSA said it is concerned the measures will need careful implementation to ensure scammers do not abuse them.

First published 24.08.2017

Lindsay.sharman@wilmingtonplc.com