Pension providers can voluntarily comply with the code, which is designed to raise awareness and standards within the pensions industry.
A sharp rise in the marketing of unsuitable products is expected following the introduction of UK pension freedoms on 6 April, which will see the removal of the requirement for an annuity.
Earlier today, it was revealed that nearly two in every five advisers surveyed by international life company Prudential said they were worried their clients could become targets.
Margaret Snowdon, chairman of the Pensions Administration Standards Association and the industry group, said of the new code: “[It] is a milestone in setting the industry standard due diligence to follow when considering a transfer request.
“Trustees, providers and administrators want to help prevent scams that can lead to the loss of members’ benefits and have felt caught between the conflicting demands of regulation.
“The code, being based on principals supported by practical guidance, should help everyone take reasonable action to protect members and themselves.”
Roger Berry, managing director at Guernsey-based Qualifying Recognised Overseas Pension Schemes provider Concept Group, who advised on and contributed to the code’s creation, said: “From the moment we heard about the planned development of a code of good practice for combating pension liberation and other scams, we were extremely supportive and wanted to assist where we could.
“We hope it will help to demonstrate our continued effort and stance towards combating scams, both in the UK and internationally.”
