Barnett Waddingham has added its voice to calls for action to tackle fraudulent pension liberation transfers.

Follows police raids earlier this month on pension liberation call centres, the consultant wants a change in the law to allow trustees to block transfers to suspect schemes.

Barnett Waddingham administration associate Ollie Clymo said: “On the one hand The Pensions Regulator is encouraging employee pension scheme trustees to stop members from transferring their funds into suspected liberation schemes but on the other no laws appear to exist to empower trustees to prevent them from doing so. An urgent change in the law is required to protect unsuspecting scheme members from being victims of fraud.”

As the Association of Professional Pension Trustees (APPT) outlined in an open letter to the pensions minister last week, members are being misled into trying to get access to pension funds before the age of 55, potentially leaving them open to significant tax claims.

Clymo said: “Pension liberation can look very appealing to members as a way of unlocking their pension savings, but the problem is often that the risks have not been properly explained by their advisers. People are often fooled by the arrangements having HMRC accreditation, which seems to be relatively straightforward to obtain.”

The confusion can be exacerbated by fraudulent agents operating under names similar to well known financial advisers, he added.

“Cash strapped pension scheme members are easy targets for these companies, but if they are aged under 55 they will come in for a nasty shock when the HMRC demands as much as 55 per cent of their fund for drawing benefits early.”

As well as pushing for powers for trustees, the consultant wants The Pensions Regulator to publish a list of liberation schemes under investigation in a similar way to that posted on the Financial Conduct Authority’s website for “boiler room” investment scams.

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