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THE POWER OF BEINGUNDERSTOOD

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THE RSM (2006) RETIREMENT BENEFIT SCHEMEMarch 2016

AN UPDATE FROM THE CHAIRMAN OF THE DIRECTORSIt’s been a big change for us this year with the rebranding of our employer in October 2015, which has in turn resulted in a change of name of the pension scheme and the trustee company. Our Scheme is now the RSM (2006) Retirement Benefit Scheme and the Trustee has changed its name to RSM Pension Trustees Limited.

As mentioned last year April 2014 saw the appointment of Michelle Wright as the Scheme Actuary. Michelle has been working hard during the past 18 months in readiness for our triennial actuarial valuation which falls due in April 2016.

As you will be aware in July 2014 the Government confirmed that the new options announced in the budget earlier in that year will also be available for members of private sector DB pension schemes (such as our Scheme), typically via a transfer to a Defined Contribution (DC) arrangement. 18 months on from the announcement and 10 months after the introduction of what are some of the most significant changes to pension regulations things are starting to settle down. In this newsletter is an update to the article that was included in last year’s newsletter and I encourage you to read it.

One of the requirements introduced last year is the need for the Trustee to obtain confirmation that a member transferring more than £30,000 has taken appropriate financial advice. The directors are conscious that the cost of this advice may be prohibitive and is talking to a number of IFAs to see if it can facilitate advice at a cost that is affordable. Further information will be in the next newsletter. However, if this is something you want to find out more about before then, please contact the Scheme Administrator.

Having disinvested in its entire investment portfolio with Barings in August 2014, the Trustee agreed to reinvest these funds across a mixture of Pyrford Global Total Return (Sterling) Fund and the Capital International Emerging Markets Total Opportunities fund. This exercise was completed in March 2015.

In August 2015 the Trustee took the decision to invest some of the growth from its equity investments in to an enhanced Liability Driven Investment Product with Insight Investment Management.

Overall, the Scheme’s assets continued to experience positive growth in the previous scheme year, increasing by 11.1% over the year to 31 March 2015. However, since then volatile markets have resulted in the assets reducing by around £9m. LCP continues to update us on the performance and appropriateness of our investments on a quarterly basis.

During the past year the Directors have continued to diversify the Scheme’s equity investment by investing net new money into the Pyford Global Total Return Sterling fund and L & G’s equity fund.

More details of the changes in our investment portfolio can be found later in this newsletter.

I am pleased to report that all deficit contributions have been received in accordance with the Schedule of Contributions and relevant Recovery Plans. The Directors continue to monitor the strength of the employer’s covenant at each Trustee meeting and with meetings and discussions with the employer when appropriate.

The Directors continue to meet each quarter and I would like to thank them and all concerned with the running of the Scheme for their efforts during the past year.

David Gwilliam

Chairman of the DirectorsRSM Pension Trustees Limited

KEEPING YOU UP TO DATE WITH YOUR PENSION SCHEME’S FINANCIAL HEALTHRSM (2006) Retirement Benefit SchemeJanuary 2016

Every year the Trustee of the RSM (2006) Retirement Benefit Scheme produces a Summary Funding Statement, like this one, to give you an update on the Scheme’s funding position.

We use independent advisers to help us to monitor the Scheme’s finances, and this statement gives you a snapshot of the Scheme on 31 March 2015.

On a more personal note, if you are considering making any changes to your own pension arrangements, you should think about taking financial advice. Financial advisers local to your home or workplace can be found at unbiased.co.uk.

Yours faithfully,

David Gwilliam

Chairman of the directorsRSM Pension Trustees Limited

Further information

If you have any questions or would like to see a copy of a Scheme’s financial accounts, rules, investment policy or other documents, please contact Roger Sheldon.

You can find his contact details on page 16.

Are your details up to date?

Please let us know if your contact details have changed.

If you would like to change the people you have nominated to receive benefits upon your death, please ask for an Expression of Wish form.

Results of the actuarial valuation at 31 March 2013

Target level of assets: £124.0 million

At 31 March 2013 the target level of assets was £124.0m, but the actual assets were £22.2m less than this.

The £22.2m shortfall does not affect pensions being paid out of the Scheme – we have always paid members their full pensions.

In order to fill the gap, RSM paid £2.6 million into the Scheme in 2013 and £2.8 million in 2014. It has also agreed with the Trustee to make further payments of:

• £2.85 million in 2015;

• £2.90 million in 2016;

• £2.95 million in 2017; and

• £3.00 million each year from 1 January 2018 to 31 July 2022

Assumptions

The Trustee employs an independent expert to provide regular checks on the Scheme’s finances. These regular check-ups involve calculating a target level of assets.

The target level of assets is the amount that is expected to be enough to continue to pay out all the pensions that members have already built up in the Scheme.

Nobody knows exactly how much money will be needed to pay everybody’s pensions. This will depend on how long members live, the level of inflation, and the returns earned on the Scheme’s investments, amongst other factors.

£22.2m

£101.8m

Shortfall

Actual assets

4

Assets of the Scheme

The assets of the Scheme come from contributions to the Scheme, together with investment growth.

The assets of the Scheme are held separately from RSM and the Trustee is responsible for investing this money. The assets are held in a common fund – they are not held in separate pots for each member.

Pensions are paid to retired members out of this common fund.

A snapshot of the Scheme on 31 March 2015

At 31 March 2015 the target level of assets was £151.5m, but the actual assets were £30.1m less than this.

Target level of assets: £151.5 million

When we wrote to you last year, the snapshot on 31 March 2014 showed a shortfall of £7.1 million.

The Scheme’s financial position has therefore deteriorated by £23 million over the year. The increase in the shortfall is largely due to a fall in government bond yields which increases the target level of assets we aim to hold. The deterioration in the funding position is not unique to this Scheme; the changes in government bond yields will have had a similar impact on other pension schemes.

The increase in the Scheme’s shortfall has been partially offset by better than expected asset returns over the year, along with contributions paid by RSM.

We expect the snapshot to change from year to year because the Scheme’s finances depend on changes in global financial markets.

Your questions answered

Q: What if the Scheme has to wind-up?

RSM and the Trustee do not intend to wind-up the Scheme. We do however monitor the impact on the Scheme should RSM no longer be able to support the scheme. In this The most recent estimate provided by our independent advisers looked at the position on 31 March 2013. This estimate showed that RSM would have to make an additional final contribution of about £76m to make sure all members’ pensions could be paid in full by an insurance company. This is larger than the shortfall shown on page 4, but this is common amongst similar UK pension schemes.

If RSM became insolvent and could not afford to pay this, you might not get your full pension benefits.

Q: Is my pension protected?

The Government has set up the Pension Protection Fund which provides pension scheme members with added security should their employer become insolvent and unable to pay the final contribution. If the Scheme were to enter the Pension Protection Fund, the amount members receive may be less than the pension benefits built up for them in the Scheme. The Pension Protection Fund rules are complex. The amount they will pay depends on the rules of the scheme, whether a pension is already being paid, a member’s age and the type of pension benefit.

More information and guidance about the Pension Protection Fund is available at pensionprotectionfund.org.uk or by contacting the Pensions Protection Fund, Renaissance, 12 Dingwall Road, Croydon, CR0 2NA (tel 0845 600 2541).

Q: Is there anything else I need to know?

Regulations require us to confirm that RSM has not taken any money out of the Scheme and the Pensions Regulator has not intervened in the running of the Scheme. We are happy to confirm this.

£30.1m

£121.4m

Shortfall

Actual assets

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IN FOCUS – TONY PIERREI have been a partner at RSM and previously Baker Tilly for over 25 years, having trained at PWC. My experience as a partner has been gained mainly on corporate transactions, where I provide a range of advisory services, including advice on acquisitions, growth opportunities, and exit strategies. I have acted as reporting accountant on a number of the largest flotations s that we have undertaken as a firm. I am also an authorised auditor.

Alongside this I am Chairman of the firm’s LLP Council and Ethics Committee.

I think my experience of capital markets, combined with the governance and oversight roles that I have within the firm, give me the right level of skills to act as a director of the trustee company.

I am married to Michelle and have a daughter who works in advertising and a son who is in his final year of an MEng degree. My devoted friend Louis, our black Labrador, keeps me grounded especially after some of Arsenal’s recent games.

I play squash and tennis each week and ski and dive (but only in warm waters!)

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HOW OUR ASSETS ARE PERFORMINGThe following investment information focuses on the Scheme’s invested assets during the Scheme year to 31 March 2015. There is also a brief update on the impact of markets following the Scheme year end. The Scheme’s assets performed well over the year, although they have since decreased slightly over the remainder of 2015 since March due to adverse economic conditions.

Where are the Scheme’s assets invested?

The Trustee’s policy is to invest in a broad range of assets. The Scheme’s asset allocation as at 31 March 2015 is shown below, with the asset allocation as at 31 March 2014 shown for comparison.

During the year, the Trustee disinvested its holdings with Barings. Using the proceeds from the disinvestment, the Trustee then appointed a new diversified growth fund mandate with Pyrford and a new emerging markets mandate with Capital, both in March 2015. The Trustee also switched £6m of assets from equities to index-linked gilts as part of a de-risking strategy.

Following March 2015, the Trustee disinvested its index-linked gilt holdings and used the proceeds to invest in a Liability Driven Investment mandate with Insight. The investment strategy for the Scheme is regularly reviewed by the Trustee and on-going discussions between the Trustee and RSM ensure a solid foundation for the Scheme.

10%

47%

39%

4% 16%

42%

37%

4%

Equities

Return-seeking assets

Bonds

Matching assets

Emerging markets fund

8

Investment performance for the year to 31 March 2015

The following chart shows the performance of the invested assets of the Scheme during the year to 31 March 2015. Performance is not shown for any investments which were not invested for the whole year although its impact will be reflected in the total Scheme performance

During the year to 31 March 2015, the Scheme’s assets performed well returning around 11%. The Scheme’s allocation to corporate bonds was largest contributor to performance returning around 13%. The Scheme’s diversified growth funds provided some diversification to the Scheme’s equity and bond assets by producing returns with a lower volatility during this period.

Investment performance since 31 March 2015

Subsequent to 31 March 2015, the Scheme’s assets have experience negative returns, decreasing by around 4% to 31 December 2015. The Scheme’s emerging markets portfolio was the biggest detractor to performance returning -10% over the nine months to 31 December 2015. The Scheme’s equity allocation also performed poorly during this period. However, this was also a period when the Scheme’s corresponding liabilities have also decreased; resulting in an overall improvement in the Scheme’s funding position.

0%

5%

10%

15%

Equitiesgrowth fund

Bonds Total Scheme

Investment performance1 year to 31 March 2015

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What are the changes?

People with defined contribution (“DC”) pension arrangements now have much more choice about how they take their pension benefits. For example, they won’t have to purchase an annuity (a pension for life normally bought from an insurance company). If they wish, they can take some or all of their pension benefits at any time from (currently) age 55 – for example, in one cash lump sum or spreading their pension money over a period of time with full flexibility. The payments would be subject to income tax rules; currently up to 25% of the payments would be tax-free.

A new Government-backed service called Pension Wise has been launched to provide free and impartial guidance to help people with DC pensions understand their options.

Can I take advantage of the new flexibilities?

Yes. As a member of the Scheme with DB benefits you are able to take advantage of the increased choice and flexibility by transferring your Scheme benefits to a DC pension arrangement, such as a personal pension plan or a stakeholder pension plan, which offers the new flexibilities (not all DC arrangements offer the new flexibilities).

You may request a transfer of your Scheme benefits at any point before your benefits come into payment (pensions already in payment cannot be transferred).

Why may transferring my Scheme benefits be attractive?

Transferring your Scheme benefits may be attractive if, for example:

• you prefer more immediate cash or more income earlier in your retirement (perhaps

• because of ill-health, paying off debts or because of spending plans); and/or

• because you wish to make use of new rules on passing DC pension assets tax-free on your death to your family.

Do I have to transfer my Scheme benefits?

No. If you are happy with your current benefits and the options offered by the Scheme there may be no need for you to consider the new rules.

As a reminder, unless your Scheme benefits are relatively small (please see below), you will receive a regular retirement income from the Scheme payable for the remainder of your life, along with the option to take a tax-free cash sum within certain limits when you retire.

A “DC” pension is a pensions savings account where what you receive is wholly dependent on the contributions paid in and the investment returns earned. , whereas a defined benefit (“DB”) pension is based on your salary and service. The Scheme is a DB pension scheme.

If you take your pension savings as a one-off lump sum or spread the money over a period of time there will then be a limit of £10,000 pa on the amount you and an employer can subsequently pay into any DC pension arrangement each year without having to pay a tax charge.

THE NEW PENSION FLEXIBILITIES

As we reported in last year’s newsletter, the Government made a number of very significant changes to pension rules from April 2015. These are designed to increase flexibility and choice for pension scheme members and so will be of interest to many members of the Scheme. We have set out below a reminder of the changes, together with a summary of the options available to you as a member of the Scheme.

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Do I have to transfer all my Scheme benefits?

No. The Trustee has agreed that members can transfer some of their benefits whilst leaving some behind in the scheme. You can only take a partial transfer once – any further transfer would need to be of all your remaining benefits.

If you have Additional Voluntary Contribution (“AVC”) funds, these may be transferred to another pension arrangement whilst leaving your other benefits in the Scheme, if you wish.

How do I decide whether to transfer my Scheme benefits?

Deciding whether it is in your best interests to transfer your benefits is complicated. You should take professional financial advice before making a decision. In fact, you are legally required to take professional financial advice if the transfer payment is more than £30,000. Financial advisers local to you can be found at https://directory.moneyadviceservice.org.uk/en.

Are there any other changes?

Yes. The Government has increased the limits for when smaller pensions may be fully converted at retirement for a one-off cash lump sum payment. If your Scheme benefits are worth less than £10,000 (as determined using HMRC rules) your benefits will be paid as a one-off cash payment instead of a pension. If your benefits are worth between £10,000 and £30,000 (again, as determined using HMRC rules) it may also be possible for you to receive your benefits as a one-off lump sum, subject to the total of all your benefits not exceeding a value of £30,000. 25% of the one-off cash payment would be tax-free with the remainder subject to income tax.

Are there any other options available to me?

Yes. As previously explained, you do not have to transfer your benefits to another pension arrangement if you do not wish and you can leave your benefits in the Scheme. Your benefits will then come into payment at your Normal Retirement Age. Alternatively, you can elect to receive your benefits earlier, but not before (currently) age 55 (although it may be possible to receive your benefits earlier if you are in ill-health). As explained above, if your Scheme benefits are relatively small you may be able to receive a one-off cash lump sum payment in lieu of your Scheme benefits.

You do not have to cease employment to take your benefits.

What next?

Please contact the Scheme Administrator if you are interested in:

• transferring some or all of your Scheme benefits to another pension arrangement and would like a transfer value quotation;

• taking a one-off cash lump sum payment in lieu of your Scheme benefits because your Scheme benefits are relatively small (if eligible); or

• receiving your Scheme benefits now (if eligible).

Contact details for the Scheme Administrator can be found at the back of this newsletter

You may request a partial transfer of your benefits if you wish.

You should note that a decision to transfer your Scheme benefits cannot be reversed.

Please note if we provide you with a transfer value quotation you are not then entitled to a further quotation for 12 months.

11

OUR MEMBERSHIP

The table below shows the changes to our membership in the 2014/2015 Scheme year

Where the term Active Member is used it refers to a member who was accruing benefits on 31 March 2010, when the Scheme ceased accrual and is still in the Company’s employment.

Roger Sheldon

ACTIVE MEMBERS WITH DEFERRED PENSIONS

NON-ACTIVE MEMBERS WITH DEFERRED PENSIONS PENSIONER MEMBERS TOTAL

At 1 April 2014 470 1,750 289 2,509

Leavers (57) 57 - -

Members retiring (7) (36) 43 -

Deaths - - (5) (5)

Spouse’s pensions - - - -

Transfers out - (5) - (5)

Commutations - (1) (1)

At 31 March 2015 406 1,766 326 2,498

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HOW SAFE IS OUR SCHEME?

In June 2014 the Pensions Regulator published its new Code of Practice on Funding Defined Benefits.

It recommended that trustees should implement an approach which integrates the management of employer covenant, investment and funding risks; identifying, assessing, monitoring and addressing those risks effectively.

This joined up approach is perhaps best presented pictorially as below;

AGREE OVERALL OBJECTIVES

COVENANT ASSESSMENT

INVESTMENT STRATEGY

FUNDING REVIEW

INTEGRATED RISK

FRAMEWORK

COVENANT

INVEST

ME

NT

FUNDING

ADOPT AN INTEGRATED APPROACH TO RISK MANAGEMENT ACROSS THE KEY RISK AREAS TO FUNDING PLAN SUCCESS – EMPLOYER COVENANT, INVESTMENT AND FUNDING RELATED RISKS” COP

Courtesy: The Pensions Regulator and LCP

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This code recognises that a strong, ongoing employer alongside an appropriate funding plan is the best support for a well governed scheme.

It therefore stresses the importance of trustees having a good understanding of the employer’s position and plans. This is because as Trustee our ability to fulfil our key duty to pay promised benefits as they fall due is enhanced if the employer supporting the scheme is successful.

To achieve this the Trustee and RSM UK work together in an open and transparent manner to reach funding solutions that recognise the needs of the scheme and the employer’s plans for sustainable growth.

As part of this process, the Trustee has agreed:

• to undertake a formal covenant review to assess the quality of the employer covenant and the ability of the Employer to make contributions to the Scheme, on a regular basis in accordance with best practice. The last formal review was February 2015; and

• to undertake a high level and less detailed review on an annual basis to monitor the employer covenant.

The first annual review following the formal covenant review was produced in February 2016. This report was prepared by Tony Pierre, a director of the trustee company and corporate finance partner at RSM UK for the benefit of the Trustee of the Scheme to demonstrate the strength of the employer covenant, using the following sources of information:

• published results of Baker Tilly UK Holdings Limited;

• internal management accounts and statutory accounts of RSM UK Group LLP;

• meetings and discussions with Alan Duley, Chief Financial Officer; and

• external credit ratings, PPF Levy and other external data sources as appropriate.

You will be pleased to hear that the employer covenant was considered strong.

Tony Pierre

14

DATA CONTROLLER Michelle Wright, the Scheme Actuary, is now also a joint data controller in relation to the Scheme member personal data. Previously it was just the Trustee who was considered to be the data controller and the Scheme Actuary was considered the data processor. If you want to know what this means, please see the ICO’s website for more information.

15

TRUSTEE, THEIR ADVISERS AND SERVICE PROVIDERSTrustee:RSM Pension Trustees Limited

Directors of RSM Pension Trustees Limited:D Gwilliam (Chairman) R M Ross A D Pierre P K Parish – member nominatedP Lunio– member nominated

Secretary to the Trustee:c/o Roger SheldonBaker Tilly Management LimitedPortland25 High StreetCrawleyWest SussexRH10 1BG

Principal Employer:Baker Tilly Management Limited

Participating Employer:RSM UK Tax & Accounting Limited

Actuary:M Wright FIALane Clark & Peacock LLP95 Wigmore StreetLondonWD1 1DQ

Registered Auditor:Grant Thornton UK LLP 4 Hardman SquareSpinningfieldsManchesterM3 3EB

Investment managers:Legal and General Investment Management LimitedStandard Life Investments LimitedPhoenix Life Capital International Management Company Sarl Pyrford International LimitedInsight Investment Management (Global) Limited

Investment Advisor:Lane Clark & Peacock LLP95 Wigmore StreetLondonWD1 1DQ

AVC providers:Aviva PLCThe Equitable Life Assurance SocietyRoyal London Mutual Assurance Society Limited

Banker:Lloyds TSB PLC4th Floor, 25 Gresham StreetLondonEC2V 7HN

Solicitor:Squire Patton Boggs (UK) LLPRutland House148 Edmund StreetBirminghamB3 2JR

Scheme Administrator:Baker Tilly Management LimitedPortland25 High StreetCrawleyWest SussexRH10 [email protected]@rsmuk.com

Payroll provider:Baker Tilly Management LimitedPortland25 High StreetCrawleyWest SussexRH10 1BG

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WHERE CAN I GET MORE INFORMATION? A number of different documents about the Scheme, which are listed below, are available to members on request. If you want us to send you any of these documents, or if you have any questions, please contact the Scheme Administrator.

Statement of Investment Principles – this explains how the Trustee invests the money paid into the Scheme

Statement of Funding Principles – this sets out the funding basis for the Scheme agreed by the Trustee and RSM

Recovery Plan – this shows how the funding shortfall is being met

Schedule of Contributions – this shows how much money is being paid into the Scheme

The Annual Report and Accounts of the Scheme – this shows the Scheme’s income and expenditure each year

Actuarial Valuation Report – this is the report prepared by the Scheme’s Actuary on the valuation at 31 March 2013

By law, we cannot give you advice about your pension arrangements. If you are thinking of making any changes for any reason, or are thinking of leaving the Scheme, you should consider obtaining independent financial advice before taking any action. The Financial Conduct Authority has useful information about finding financial advice. Their website is: www.moneyadviceservice.org.uk. In addition, the Pensions Advisory Service can answer any questions on all aspects of pension schemes. Their website is http://www.pensionsadvisoryservice.org.uk.

17

APPENDIX

Scamproof your savings

Pension scams. Don’t get stung.

18

Pension scams Help for individuals 2

Pension scams: the factsPensions are changing. From April 2015, if you are over 55 years old, you can access your pension savings in new ways.

Scammers are after your pension pot. They will try to lure you with promises of one-off investments, pension loans or upfront cash. Most of these are bogus.

If you’re under age 55, you cannot release your pension unless you are too ill to work. Read the checklist on the next page to get to know the hallmarks of a scam.

If you’re over 55, you can release funds from your pension from April 2015. You may still be at risk from scammers. Make sure you use the government’s Pension Wise service to understand your options. You might also want to speak to an adviser who is authorised by the Financial Conduct Authority (FCA) before making any decisions that could affect the rest of your life. See the back of this booklet for useful links and contacts.

By following the tips in this guide, you are giving yourself the best possible protection against scammers. Arm yourself with the facts and stop a lifetime’s savings being lost.

19


Under age 55 Age 55 or older*

û You can’t release or ‘cash in’ your pension (unless you are too ill to work)

ü You can use your pension to buy a regular income for the rest of your life (an ‘annuity’)

ü You can transfer your pension from one regulated scheme to another

ü You can use your pension to provide a flexible retirement income (‘flexi-access drawdown’)

ü You can take your pension as cash in stages

ü You can take the whole pot as cash in one go

There may be tax implications for how you access your savings

What can I do with my pension pot?

Scammers don’t care whether you’re an inexperienced investor or have never put your money anywhere other than a bank. They will try to flatter, tempt and pressure you into transferring your pension fund into an investment with attractive sounding returns. Once you’ve signed the forms and the transfer has gone through, it’s too late. You’ll probably lose all your savings and end up with nothing but a hefty tax bill. Remember, the only people who benefit from scams are the scammers themselves.

Convincing marketing materials that promise you returns of over 8% on your investment

A cold call, text message, website pop-up or someone coming to your door offering you a ‘free pension review’, ‘one-off investment opportunity’ or ‘legal loophole’

55

Pension access

before age

Paperwork delivered to your door by courier that requires immediate signature

How to spot the warning signsSome of the most common tactics used by scammers to trick you out of your savings

*from April 2015

A proposal to put your money in a single investment. In most circumstances, financial advisers will suggest diversification of assets.

Overseas transfer of the funds


Oliver’s storyTricked into being part of the scam

Oliver is cold called by someone who says his name is Paul, a financial adviser authorised by the government. He asks if Oliver is interested in making the money in his pension pot work harder – as well as releasing some funds for Oliver to spend as he likes. Paul says he could get Oliver an initial cash back bonus of 30% of the value of his pension pot, and a much better return on his money – around 8%. All he needs to do is sign a document saying he wants to transfer his pension into another scheme, and the money will then get invested in a hotel complex in an up-and-coming area of Spain.

Paul tells him that if he agrees to be ‘locked in’ to the investment for 10 years, he will get an annual cash back payment of £1,000. Oliver is keen to make the most of his money – he’s heard that he’ll be able to do what he wants with his savings when he’s 55, so thinks this could be a good solution to beating the current low interest rates that mean his pension pot isn’t growing as quickly as he’d like.

Oliver’s a bit concerned that it sounds too good to be true, but Paul reassures him. He says he understands there are lots of crooks out there but he’s government registered. He promises to send Oliver some marketing material and encourages him to check out the website. He tells Oliver that there are only a few opportunities left and that it’s a time-limited offer, so if he wants to make the most of it, he should act quickly.

The next day, Oliver gets a glossy brochure through his door – he has a read through and it looks very slick and professional. The website also seems completely legitimate. Oliver likes to think he’s an intelligent person, and Paul seems very nice and credible. In fact, Paul calls back that afternoon, and Oliver decides that you only live once – why not go for it? You have to speculate to accumulate.

Within a couple of hours, a courier comes round with some papers to sign. Oliver has a quick look through them and is surprised to see that the documents say he is now a company director and trustee of his pension scheme. He doesn’t remember Paul saying anything about making him a company director, but the courier can’t give him any more information and Oliver keeps thinking of the time-limited offer. So he signs on the dotted line.

Age: 45 Length of time in company pension: 15 years Investment offer: overseas property developments

20


Oliver’s storyTricked into being part of the scam

Oliver is cold called by someone who says his name is Paul, a financial adviser authorised by the government. He asks if Oliver is interested in making the money in his pension pot work harder – as well as releasing some funds for Oliver to spend as he likes. Paul says he could get Oliver an initial cash back bonus of 30% of the value of his pension pot, and a much better return on his money – around 8%. All he needs to do is sign a document saying he wants to transfer his pension into another scheme, and the money will then get invested in a hotel complex in an up-and-coming area of Spain.

Paul tells him that if he agrees to be ‘locked in’ to the investment for 10 years, he will get an annual cash back payment of £1,000. Oliver is keen to make the most of his money – he’s heard that he’ll be able to do what he wants with his savings when he’s 55, so thinks this could be a good solution to beating the current low interest rates that mean his pension pot isn’t growing as quickly as he’d like.

Oliver’s a bit concerned that it sounds too good to be true, but Paul reassures him. He says he understands there are lots of crooks out there but he’s government registered. He promises to send Oliver some marketing material and encourages him to check out the website. He tells Oliver that there are only a few opportunities left and that it’s a time-limited offer, so if he wants to make the most of it, he should act quickly.

The next day, Oliver gets a glossy brochure through his door – he has a read through and it looks very slick and professional. The website also seems completely legitimate. Oliver likes to think he’s an intelligent person, and Paul seems very nice and credible. In fact, Paul calls back that afternoon, and Oliver decides that you only live once – why not go for it? You have to speculate to accumulate.

Within a couple of hours, a courier comes round with some papers to sign. Oliver has a quick look through them and is surprised to see that the documents say he is now a company director and trustee of his pension scheme. He doesn’t remember Paul saying anything about making him a company director, but the courier can’t give him any more information and Oliver keeps thinking of the time-limited offer. So he signs on the dotted line.

Age: 45 Length of time in company pension: 15 years Investment offer: overseas property developments


Later that year, Oliver decides to call up and check on how his investment’s doing. The line is disconnected, so he searches online and finds out that some pension transfer offers are scams. After several more months of trying to locate Paul and the missing money, Oliver calls the police and comes to realise that he has probably lost his whole pension pot. By signing the papers and becoming a company director, he has taken on new legal duties with Companies House and HMRC that he didn’t know about. This leads to HMRC fining him for tax-related offences. Not only has Oliver lost 15 years’ worth of savings – he’s also having to pay thousands of pounds in fines to the authorities.

• Cold call

• Claims of adviser being authorised by government – but not registered with the FCA

• Promises of cash back under the age of 55

• Unrealistic returns of at least 8%

• Promises of higher returns if he agrees to being ‘locked in’ to a single investment for a number of years

• Being rushed into signing couriered documents with promises of a time-limited offer

• Documents naming him as company director and trustee of the pension scheme

What should Oliver have spotted?

21


How to scamproof yourself• Stop. Think about it. A genuine adviser will never

rush you into a decision

• Make sure the adviser is registered by the Financial Conduct Authority at www.fca.org.uk/register

• Look at the FCA’s Scamsmart warning list at www.fca.org.uk/scamsmart – this will tell you the names of investment schemes that are known scams

• If you are approaching 55 or about to retire, Pension Wise can tell you more about what you can do with your retirement pot. Visit the website at www.pensionwise.gov.uk

• Before you sign anything, call The Pensions Advisory Service on 0300 123 1047 for information and advice about pension scams

• If you’ve already signed the papers, report it to Action Fraud at www.actionfraud.police.uk or call 0300 123 2040

If you take financial advice by someone registered with the FCA, you may be able to claim compensation if something goes wrong. If the adviser isn’t registered, you risk losing everything.

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Pension scams Help for individuals © The Pensions Regulator March 2015

You can reproduce the text in this publication as long as you quote The Pensions Regulator’s name and the title of the publication. Please contact us if you have any questions about this publication. We can produce it in Braille, large print or on audio tape. We can also produce it in other languages.

A cross-government initiative by:

If you suspect a scam, call:

Impartial information and guidance on scams:

Information and guidance on options when approaching retirement:

0300 123 1047 www.pensionsadvisoryservice.org.uk

www.pensionwise.gov.uk

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