In this age of a global pandemic, the one thing that has been rising exponentially is the number of fraudulent financial transactions people are falling prey to, whether through fraudulent investment schemes or instant cash-releasing transactions. The number of the number of complaints to the UK’s Financial Ombudsman Service (FOS) about fraud and scams in their casework in Q2 2021 was 30% higher when compared to Q2 2020.
What better time than now to safeguard clients invested assets by ensuring pensions transfers processes are robust and transparent. Rules from the Department for Work and Pensions enacted from November 2021 aim to prevent the scale of fraud that has led to an estimated £10 billion of pensions money being lost to pension investors since 2015.
Gaudi welcome the DWP new rules as they will help in identifying deals, schemes and companies to avoid when somebody is considering transferring their hard-earned cash invested in a pension or built up through years of employment. The new rules mean that pension scheme members and investors must confirm that any financial advice taken is not a scam when pension schemes seem less than above board or have been amber flagged.
In response to meeting DWP’s pension transfer regulations requirements efficiently and effectively Gaudi have developed its own ‘green list’ risk rating of firms where, following the successful completion of appropriate initial due diligence, pension transfers can be safely fast tracked into the new pension plan which Gaudi administers.
To secure this high-level due diligence activity we have developed and actively maintain supporting documentation tracking the compliance checks undertaken to evidence assurance that the proposed scheme and ceding administrators satisfy our ‘green list’ criteria. This reduces the potential burden on pension scheme administrators by removing the need for repeated processes that could potentially lengthen pension transfer times due to inefficiency in back-office operations and transfer calculations. Our processes can be implemented into your business swiftly and can be applied to all types of pensions including defined benefit and defined contribution pension schemes.