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ARTICLE · 10 SEPTEMBER 2018

The Pensions Brief - August 2018

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The Ombudsman concluded that, had the administrator provided the member with the "Scorpion" leaflet, and had it acted more diligently

United KingdomEmployment and HR
Edward Jewitt
Edward Jewitt
Katherine Carter
Katherine Carter
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Issues affecting all schemes

Pension transfers – trustee duties

The Pensions Ombudsman has decided that a scheme administrator's failure to send the Pensions Regulator's "Scorpion" leaflet to a member requesting a transfer, and to carry out proper due diligence checks on a receiving scheme which turned out to be a suspected scam vehicle, amounted to maladministration.

The Ombudsman concluded that, had the administrator provided the member with the "Scorpion" leaflet, and had it acted more diligently, on the balance of probabilities the member would not have proceeded with the transfer. The Ombudsman therefore directed the administrator to reinstate the member's benefits in the transferring scheme (subject to the administrator having a right to recover from the member any amounts that the member might retrieve from the receiving scheme).

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