The regulator warned investors to seek independent advice and steer clear of unusual and unregulated schemes.
Pensioners have already been caught out this year by schemes involving forestry and storage funds among others.
In its latest warning the FCA has published a list of questions to ask yourself before moving your money:
- Have you been motivated by a call, online advert or text out of the blue to discuss your pension or to offer a free pension review?
- Is the new scheme a self-invested personal pension (SIPP), a small self-administered scheme (SSAS) or a qualifying recognised overseas pension scheme (QROPS)?
- Will your pension pot be investing in unusual investments such as overseas property, forestry, storage units, care homes, biofuels or other businesses you don’t know much about?
- Does your new arrangement require you to set up a limited company?
- Have you been promised guaranteed returns and/or a cash sum from your pension?
- Free pension reviews are designed to persuade you to move money saved in an existing pension pot to a new scheme. Chances are your money will be invested in something that is either very risky or a scam.
- Professional pension advice is not free. Professional advisers looking to act in your best interests are very unlikely to cold call you offering their services.
- Always check that anyone providing advice on your pension pot is authorised by the FCA and has our permission to give advice on pensions, if they are authorised, their name will appear on our register. For information on how to search our Register, visit The Financial Services Register.
Risks
The FCA warned that savers are putting money into badly run investments or outright scams.
Even if the investment is reasonably well run, unusual investments tend to be risky, unregulated and without guaranteed returns.
In instances where cash sums are released they can be liable for up to 55% tax.
Most of the companies making these offers are not authorised or regulated, according to the FCA, leaving vulnerable investors without recourse when things go wrong.
