The discovery of fraudulent schemes has led to a court case to decide the legality of pension liberation schemes.
The high-profile case beginning today at the High Court is the conclusion of Operation Neame, a series of raids on organisations suspected of conducting liberation fraud schemes.
The Pensions Regulator (TPR) aims to have all pension liberation schemes ruled illegal.
Andrew Warwick-Thompson, executive director of TPR commented: ‘This case is expected to mark an important step in our work to stamp down on pension liberation fraud. These schemes are being marketed with a veneer of legitimacy but anyone taken in could see their pension savings decimated.
‘We are seeking a court ruling as to the legal status of these schemes, which may assist us in shutting down liberation models that we believe pose the greatest risks to members.’
‘Irrespective of the outcome of this case, we have a suite of powers we can use to disrupt pension liberation fraud. We are determined to prevent the perpetrators of pension liberation fraud from trying to exploit, bend or break the rules.’