Buzz: Give TPR power to fight pension liberation

clock • 1 min read

Almost half of Buzz contributors thought The Pensions Regulator needed more power to guard against pension liberation fraud. But, in a week when the City of London Police announced it had broken up a major pensions liberation scam, more than two out of five respondents were wary of any calls for more powers.

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"The current situation is ludicrous," said one commentator. "The whole industry knows pensions liberation is happening and neither of our regulators can do anything about it."

Some contributors though TPR should maintain a public list of schemes that were used as pension liberation vehicles. Others said HM Revenue and Customs should be doing more to weed these schemes out.

"I do not understand why these arrangements are so difficult to identify and close," said one contributor. "Surely a more robust check on registration would help."

Another commentator added: "It is far too easy to obtain registered pension scheme status."

"Regulation and penalties should apply to the companies pushing these scams," said one respondent. "At present, penalties apply to the pension pots of the members who have been duped, which is unjust."

Another contributor asked: "How about protecting the trustees though? At the minute they're between a rock and a hard place."

But there were some contributors who had little sympathy for members or trustees.

"A fool and their money are easily parted," observed one commentator. "There is already plenty of information out there to warn sensible people to steer clear."

Another respondent said: "Trustees and administrators have regularly been warned. Most dangers can be avoided by basic good practice. If trustees or administrators fail to take reasonable steps, that is their fault."

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