Following The Chancellor's pension reform in The 2014 Budget, the pension pot chasers are already making unsolicited cold calls

This is according to Michael Ward, Managing Director of consumer comparison website www.PayingTooMuch.com. And he asks the Financial Conduct Authority (FCA) to stop this type of pension pot chasing behaviour taking hold and becoming a national joke in the way PPI claims have. His request follows a telephone call he received personally this week.

“Quite remarkably, I received a telephone call from a company offering to initially reduce my business rate bills. They then proceeded to ask if I was aware of the changes to pensions that meant I could get access to all my pension money in one go and they could introduce me to a company that can instruct me on how to use the new 2014 Budget rules to enable me to release all my cash from my pension fund. Apparently the advice is “free” and when I questioned if the third party was a qualified financial adviser, I was told they were 'financial consultants'.Simply, this firm was going to sell my details as a lead. The call definitely wasn't compliant with the FCA rules for financial promotions. The salesman said they were based in Manchester, however when I looked them up during the call, I could only see a Gibraltar address. When I questioned this, the salesman was adamant they have a branch in Manchester also. I checked and couldn't find them on the FCA register.”

Michael Ward continues: “This raises many questions: How are unregulated companies being allowed to interfere with people's pensions, taking an introductory fee in the process and in all likelihood leaving the customer worse off years down the line when their money has run out? I know, in order to give advice, advisers have to be formally trained as Financial Advisers and pass exams and maintain a program of continuing education. When a member of the public telephones an insurance provider for help, the call centre operator is not allowed to advise the customer on what to buy – only offer help in using the system, delivering quotes and sorting general customer issues.”