The Pension Scams Industry Group (PSIG), a voluntary body created by the pensions sector to combat pension scams, is facing an uncertain future.

With supporters reluctant to commit to greater funding, the body says it will need to consider its future in the first half of 2025.

Options are likely to include some scaling back of operations without extra funding being found.

The organisation, focused on sharing good practice on how to stop scams, carried out an exhaustive consultation process earlier in 2024.

The consultation found widespread support for PSIG but revealed that sponsors were less keen to meet funding requirements without some clear indications of what specific services would be offered in return.

PSIG runs the widely-adopted Code of Good Practice designed to protect pension scheme members.

PSIG said that although the code “currently works” it is ultimately unsustainable in its current form and it is possible that the Code could be withdrawn.

PSIG said that while it will continue on a voluntary basis it may need to scale back its operation and a new version of the code would be “conditional on the explicit support of DWP, TPR, FCA and TPO, so PSIG will work to secure that support.”

PSIG plans to consider its options in the first half of 2025 and return to the industry with proposals for the future.

It added: “In the meantime, we will scale down our privately-borne governance costs, including our Companies House registration as a Community Interest Company and our website development.”

The consultation was launched in May and called  ‘Evolution or Extinction’. PSIG responded to the feedback just before Christmas.

Chair of PSIG, Margaret Snowdon said: “Feedback on the consultation shows that our Code of Good Practice is not only widely used but also highly valued. It's evident that the industry supports our continued efforts and focus on scams and has a specific desire for us to adopt a more dynamic approach. 

“Overall, the response has been encouraging, we are pleased that our work is valued, and we are grateful to those who took the time to respond. However, we are disappointed that the industry is not yet ready to provide funding for our operation – particularly given the interest in even more services, all of which require resources.

"Our group is made up entirely of volunteers who dedicate their time and expertise at their own cost. This is a significant commitment and involves a considerable amount of work, but a lack of operational support holds us back. To be more proactive and professional, as requested by the respondents to our survey, we need more support. 

“As we enter 2025, we remain committed to publishing an updated version of the Code of Good Practice, will continue to contribute to the multi-agency Pension Scams Action Group and to offer our Pension Scams Industry Forum. We will review our options during the year and come back to the industry with a proposal on the way forward.”