Two independent financial advisers from Banbury and Leamington Spa have pleaded guilty to cheating the public regarding their pensions.
We previously reported that the Inland Revenue were aware of unscrupulous financial advisers helping people to get hold of their pension pot in cash, rather than having to buy an income with the fund.
The two advisers, Stephen Russell and William Ferguson, were accused of getting around 200 people to transfer their existing pension funds into bogus ones and are said to have made around £600,000 from the dealings.
The Occupational Pensions Regulatory Authority is also investigating another five cases of this type of scam, known as pension liberalisation. The two men will be sentenced on 27 February 2003.
If you are approached to transfer your pension and are told that you can receive the whole fund in cash (less the advisers cut, usually of around 20%), please think more than twice! If it sounds too good to be true, it probably is.