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Gov’t weighs law change in crackdown on liberation fraud
by Brian Cantwell on Sep 09, 2013 at 15:47
The government is considering making changes to the law in an effort to clamp down on pension liberation fraud.
The Department for Work and Pensions will meet with member of the liberation task force Project Bloom, including the Pension Regulator, the Financial Conduct Authority, and the Serious Fraud Office, on Thursday to discuss further measures to stamp out the fraud, which could include changes to the law.
Pension liberation schemes offer unsuspecting consumers a means of accessing their pension savings before the age of 55. This can be illegal and result in them incurring a tax charge of up to 55%.
Pensions minister Steve Webb (pictured) said: ‘Pension liberation fraud is a crime. That is why, as part of our plans to build a fairer society, we are working across government and industry to stamp it out and to raise awareness of the dangers of handing over your pension pot. By coming together this week we will look at what else could be done, including whether we may need to change the law.’
‘By signing up to one of these schemes you will destroy your future retirement savings. The promise of easy money when times are tough is all too tempting, and there are far too many unscrupulous people who will prey upon this.
‘These people want your pension pot and if you are offered a deal to unlock your pension, don’t touch it.’
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