Following consultation, the government has decided to proceed with its three main proposals aimed at making it harder for fraudsters to carry out pensions scams. Legislation in the second 2017 Finance Bill will introduce stricter rules for opening new schemes.
Following consultation, the government has decided to proceed with its three main proposals aimed at making it harder for fraudsters to carry out pensions scams. Legislation in the second 2017 Finance Bill will introduce stricter rules for opening new schemes. The statutory right to transfer a pension will be restricted and a ban introduced on cold calling in relation to pensions.
In relation to scheme registration, the government will:
· introduce legislation in the second 2017 Finance Bill requiring all new pension scheme registrations to be made through an active company, while allowing HMRC to exercise discretion; and
· amend the scheme registration process to enable HMRC to check that sponsoring employers have consented to the opening of new schemes.
The statutory right to transfer will be limited to:
· schemes operated by firms authorised by the FCA;
· authorised Master Trust schemes; and
· schemes where a genuine employment link could be evidenced.
The government will continue to consult stakeholders on:
· how best to implement the employment link, such as the level of any earnings threshold for provision of proof of earnings;
· how best to add QROPS to the statutory transfer criteria;
· whether to underline the need to undertake due diligence in legislation;
· whether there is a need to provide a power for schemes to amend their scheme rules to accommodate non-statutory transfers; and
· how to coordinate the introduction of the proposals with the roll out of the Master Trusts authorisation regime, which is not due to begin until late 2018.
The government will bring forward legislation to introduce a ban on cold calling in relation to pensions, ‘when Parliamentary time allows’. The ban will extend to all electronic communications about pensions, but will exempting ‘legitimate business’, such as where consumers have expressly requested information from a firm, or where an existing client relationship exists.
Following consultation, the government has decided to proceed with its three main proposals aimed at making it harder for fraudsters to carry out pensions scams. Legislation in the second 2017 Finance Bill will introduce stricter rules for opening new schemes.
Following consultation, the government has decided to proceed with its three main proposals aimed at making it harder for fraudsters to carry out pensions scams. Legislation in the second 2017 Finance Bill will introduce stricter rules for opening new schemes. The statutory right to transfer a pension will be restricted and a ban introduced on cold calling in relation to pensions.
In relation to scheme registration, the government will:
· introduce legislation in the second 2017 Finance Bill requiring all new pension scheme registrations to be made through an active company, while allowing HMRC to exercise discretion; and
· amend the scheme registration process to enable HMRC to check that sponsoring employers have consented to the opening of new schemes.
The statutory right to transfer will be limited to:
· schemes operated by firms authorised by the FCA;
· authorised Master Trust schemes; and
· schemes where a genuine employment link could be evidenced.
The government will continue to consult stakeholders on:
· how best to implement the employment link, such as the level of any earnings threshold for provision of proof of earnings;
· how best to add QROPS to the statutory transfer criteria;
· whether to underline the need to undertake due diligence in legislation;
· whether there is a need to provide a power for schemes to amend their scheme rules to accommodate non-statutory transfers; and
· how to coordinate the introduction of the proposals with the roll out of the Master Trusts authorisation regime, which is not due to begin until late 2018.
The government will bring forward legislation to introduce a ban on cold calling in relation to pensions, ‘when Parliamentary time allows’. The ban will extend to all electronic communications about pensions, but will exempting ‘legitimate business’, such as where consumers have expressly requested information from a firm, or where an existing client relationship exists.
