UK - Pensions schemes may be duped into adopting unnecessary data protection measures, lawyers warn.
Law firm Laytons said the statutory obligation for companies to notify the government of data held on scheme members has prompted individuals to get businesses to pay for unnecessary services.
It said the agents – often with official sounding names – send confusing messages and use “scare-mongering” tactics to persuade businesses to incur extra compliance costs.
The warning follows the naming and shaming of seven agents which offer such services by the Information Commissioner, which oversees the Data Protection Act 1998.
These are Data Protection Act Registration Service, Data Protection Agency Services, Data Protection Registration Agency, Data Collection Enforcement Agency, Data Registration Agency, DPA Registration Agency and Data Protection Act Registration Agency.
Laytons solicitor Gary Fotios said: “These agents are cashing in on the fear factor.
“While it is true in most instances that businesses processing personal data need to notify the Information Commissioner, notification itself is a relatively painless and inexpensive process.”
The Pensions and Lifetime Savings Association (PLSA) has announced it will shrink its board by more than one-third as part of a governance overhaul to make it "agile and more appropriate".
Smaller FTSE 350 defined benefit (DB) schemes were nearly 15 percentage points less well-funded than larger schemes in 2017, according to a Goldman Sachs Asset Management (GSAM) analysis.
The advent of collective pension systems could help the UK avoid demographic challenges which will make it "impossible" for society to help savers in retirement, experts say.