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<p>The Government is committed to safeguarding consumer savings. The Government is
raising public awareness of scams through ongoing communications directly from DWP
and with other organisations.</p><p>Joint and independent communications from the
FCA and tPR spelling out the dangers, what to watch out for and giving clarity to
trustees and providers on the boundaries between guidance and advice have been issued
since April this year (<a href="https://www.fca.org.uk/news/press-releases/covid-19-savers-stay-calm-dont-rush-financial-decisions"
target="_blank">https://www.fca.org.uk/news/press-releases/covid-19-savers-stay-calm-dont-rush-financial-decisions</a>).
Prior to Covid-19 the FCA and tPR conducted regular campaigns, through the ScamSmart
branding, to raise awareness of pension scams and what to watch out for, these have
been deemed very successful, over 222,000 visited the ScamSmart website to find out
how to identify a scam scheme as a result of the most recent pre Covid campaign, July
– November 2019.</p><p>In addition, Government is actively monitoring the numbers
of transfers and scams and preparing further policy responses. At the onset of the
covid-19 pandemic, the Department convened a cross-government and regulator group
to closely monitor and respond to any increase in transfers and scams. The group includes
DWP, HMT, both the Pensions Regulator and the FCA as well as the Money and Pensions
Service and the Pension Ombudsman. All of the participating organisations have confirmed
that to date no evidence has emerged of an increase in either transfers or scams,
based on their internal monitoring of the industry.</p><p>DWP continues to communicate
regularly on social media to set out the warning signs of a scam and has made multiple
posts referencing Pension Scams and #ScamSmart in total across Twitter, Facebook and
LinkedIn in the period March to September 2020.</p><p>The Pension Schemes Bill was
amended by Government in the House of Lords to add to the example conditions that
can be placed on the statutory right to transfer by regulations. This amendment makes
it explicit that the regulations can require that in certain circumstances the member
demonstrates they have taken information or guidance before the transfer can proceed
to ensure they are informed of the risks.</p><p>The Government wants to support all
pension savers aged 50 and over in the lead up to accessing their pension savings,
to make informed choices about their retirement income, which includes making them
aware of Pension Wise through communications from their pension scheme trustees. We
intend introducing Single page summary and single page risk warnings from age 50 and
then every 5 years until the point they access their pension savings.</p><p>The Money
and Pensions Service (MaPS) conducted trials to establish different ways to encourage
more people to take Pension Wise guidance before accessing their pension savings under
Pension Freedoms. These trials found that a nudge developed using behavioural science
principles significantly increased take-up of Pension Wise guidance among those wishing
to access their pension savings under pension freedoms. The evaluation report was
published in July 2020. We are working to develop the most effective and proportionate
way to implement this nudge to pension guidance. We intend to publish our proposed
way forward shortly.</p><p>In addition, we have banned cold calling and seek to provide
and prosecute and publicise the conviction of all who commit pension scams.</p>
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