Former Pensions Minister Ros Altmann has questioned the government as to why they have not banned pensions related cold calling.

In a written question, submitted to the Department for Culture, Media and Sport last month, Altmann asked “why cold calls regarding mortgages can be banned but not cold calls offering free pension reviews or unregulated pension investments.

Altmann was answered by Lord Ashton of Hyde who said: “The Financial Conduct Authority (FCA) prohibition on cold calling applies to financial promotion of mortgages by FCA regulated firms. Under the FCA rules, regulated entities (including mortgage providers) are not allowed to engage in real-time financial promotion of mortgages and therefore no legitimate market for telephone promotion and sales exists.

“The government tightened controls on cold calling earlier this year, when amending the Privacy and Electronic Communications Regulations (PECR), making it a requirement for organisations making direct marketing calls to display their Calling Line Identification (CLI).

"These controls need time to bed in before considering whether further changes, specific to pensions, are appropriate. If there is a case for change, the government will take the necessary action."

In addition, Altmann asked the government what estimate they have made of the percentage of pension scams in the UK that originate overseas and are initiated by UK-based firms.

Pressure is mounting on the government to take action over cold calls, as a petition has been created which calls for cold calling in relation to pensions or investments to be made illegal.

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