Watch Out For "Free Pension Review" Scam, FCA Tells Consumers

Mark Shapland

22 May 2014

Consumers should keep alert for “dodgy” firms claiming to offer a free pension review, the has said in a statement.

The financial body says these firms are claiming to act for the government following its Budget statement which pledged free guidance for people at retirement. The government initiative has not yet been launched.

Consumers may be contacted by phone, email, text message or an online advert.

“People should be very wary if they are contacted out of the blue by someone offering a ‘free pension review,” said Tracey McDermott, director of enforcement and financial crime at the FCA

“Most of the companies offering this ‘service’ are not authorised by us, and we’re concerned that the reviews often end with pension pots placed in higher-risk, unregulated investments.”

The cold callers want consumers to move their money to a self-invested personal pension or a small self-administered scheme with the aim of earning better returns.

The pension pot is then typically invested in unregulated investments like overseas property developments, forestry or storage units known as store pods, the FCA adds.