The Association of Professional Financial Advisers has welcomed the government’s proposals on scams and supported the ban on the cold calling on pension transfers.
But it has warned care is needed to protect the ordinary marketing activities of financial advisers.
Apfa has called for more to be done to protect consumers by tightening the rules around the provision of unregulated investments.
Chris Hannant, director general of Apfa, said: “If the government implements these proposals swiftly, it will be a welcome step towards addressing the problem.
“Unfortunately, more will probably be needed. The regulator, the government, pension providers and advisers should work together to protect consumers from high-risk or fraudulent investments in which they are highly likely to lose their money.
“Further monitoring will be needed and prompt response as scammers move on to other ways to con people out of their savings.”
Among Apfa’s concerns was the fact that the cold calling ban could prevent advisers from marketing their activities, particularly from offering free initial consultations.
It also raised concerns that it would act as a barrier to entry for financial advisers, hampering their attempts to build their client base through lead generators.
Apfa said retail investors were being sold inappropriate unregulated investments held within self-invested personal pensions or small self administered scheme products.
It said reducing the size of the consumer losses should be the priority and that the regulatory framework for unregulated products should be tightened.