We reported a number of times earlier in the year about rogue financial advisers helping people to 'liberate' their pensions. At the time, the Inland Revenue had become involved and now it is the turn of OPRA, the occupational pensions regulatory authority.
Pension policyholders were being offered the chance to transfer their pensions into fictitious pension schemes with the money all being paid out tax-free. The people organising the transfers were apparently charging between 20% and 30% for the liberation.
The saga has now moved on and OPRA have named, shamed and fined two pension schemes involved. They are the Northwest Marketing Pension Scheme and the Northwest Marketing Executive Pension Scheme. Two scheme trustees were investigated and fined £22,000 each. They were also disqualified as trustees.
Following these scandals, both the Inland Revenue and OPRA offer publications for trustees to try and prevent reoccurrences. If you are a trustee and would like copies, you can visit OPRA's web site or you can get in touch with your local Inland Revenue and ask for Pensions Update 132.