Nearly two-fifths (39 per cent) of ‘amber flags’ raised by pension trustees of a transferring pension scheme were due to overseas investments, according to a Freedom of Information (FOI) request by Quilter.
The FOI data from the Money and Pensions Service (Maps) showed that 134 amber flags were raised and the related pension transfers therefore but on hold due to overseas investments between the end of November 2021 and the end of March 2022.
However, Quilter stated that this figure was “a small representation”, as Maps only keeps a record where the member is given the details of the amber flag by the transferring scheme.
Between the introduction of new pension transfer rules at the end of November 2021 and the end of March 2022, 348 amber flags detailed why they had been raised and why guidance was necessary.
Almost a quarter (23 per cent) of amber flags were due to high risk/unregulated investments, 16 per cent were due to unclear/high fees, and 13 per cent were due to a complex investment structure.
Quilter noted that due to the way the new rules are worded, some pension schemes were raising amber flags on overseas investments covering mainstream investments, such as funds from major asset managers that are investing globally.
The new transfer rules state that if a trustee has raised an amber flag, the transfer is paused until the member involved has proved they have received scam advice from Maps.
The FOI data revealed that the number of Maps scam guidance…
