Former pensions minister Baroness Ros Altmann has questioned why the government has not banned cold calls on pensions when there is a ban in place for such calls relating to mortgages.
Baroness Altmann's written question to the House of Lords came two weeks after a petition was launched calling for a ban on cold calling relating to pensions and investments.
The question read: "To ask Her Majesty's Government why cold calls regarding mortgages can be banned but not cold calls offering free pension reviews or unregulated pension investments."
The question was answered by Lord Ashton of Hyde, who, as under secretary of state for culture, media and sport, is part of the department with responsibility for "nuisance calls".
His answer read: "The Financial Conduct Authority prohibition on cold calling applies to financial promotion of mortgages by FCA regulated firms.
"Under the FCA rules, regulated entities (including mortgage providers) are not allowed to engage in real-time financial promotion of mortgages and therefore no legitimate market for telephone promotion and sales exists.
"The Government tightened controls on cold calling earlier this year, when amending the Privacy and Electronic Communications Regulations, making it a requirement for organisations making direct marketing calls to display their Callling Line Identification.
"These controls need time to bed in before considering whether further changes, specific to pensions, are appropriate. If there is a case for change, the Government will take the necessary action."
The petition to ban cold calling was launched by Darren Cooke, a financial planner with Red Circle Financial Planning, on 21 September. As of midday today (3 October) it had received 970 signatures.
The petition has six months to gather 10,000 signatures. If it succeeds, the government has to provide a response. If it receives 100,000 signatures, it must be considered for debate in parliament.
james.fernyhough@ft.com
