PECR: Claims Management & Pensions Cold Calling (Regulations 21A-21B)
Claims Management & Pensions Cold Calling [Reg 21A-21B]
Rule: Cold calling about claims management services and pension schemes is banned unless the recipient has explicitly consented.
Regulation 21A: Claims Management Services (Effective 8 September 2018)
| Requirement | Details | Citation |
|---|---|---|
| Default ban | Cannot cold call about claims management services | Reg 21A(1) |
| Consent required | Only permitted if subscriber has previously consented | Reg 21A(2) |
| Line misuse | Subscribers cannot permit their line to violate the ban | Reg 21A(3) |
Claims management services include:
- Advice on making a claim
- Financial services/assistance for claims
- Legal representation
- Referral or introduction services
- Inquiry-making on behalf of claimants
“Claim” means: seeking compensation, restitution, repayment, or other remedy for loss/damage through court, regulatory schemes, or voluntary undertakings.
Regulation 21B: Pension Schemes (Effective 9 January 2019)
| Requirement | Details | Citation |
|---|---|---|
| Default ban | Cannot cold call individuals about pensions | Reg 21B(1) |
| Exception 1: Prior consent | Permitted if caller is FCA-authorised AND recipient consented | Reg 21B(2) |
| Exception 2: Existing client | Permitted if FCA-authorised, existing relationship, and opt-out provided | Reg 21B(3) |
| Line misuse | Subscribers cannot permit their line to violate the ban | Reg 21B(4) |
Direct marketing covers:
- Marketing products/services using pension funds
- Advice on withdrawals or transfers
- Pension performance assessment services
“Authorized person”: Must be authorized under section 31 of Financial Services and Markets Act 2000
“Existing client relationship”: Does NOT include relationships created primarily to circumvent restrictions
Why These Bans Exist
Both regulations were introduced to combat aggressive cold calling:
- Claims management: Epidemic of nuisance PPI and accident claims calls
- Pensions: Protecting individuals from pension scams and high-pressure sales
Penalties
Breach = up to £500,000 fine from ICO (Regulation 31)
Source Text
Regulation 21A
21A.—(1) A person shall not use, or instigate the use of, a public electronic communications service for the purposes of making unsolicited calls for direct marketing in relation to claims management services except where the called line is that of a subscriber who has previously notified the caller that for the time being the subscriber consents to such calls being made on that line.
(2) A subscriber shall not permit his line to be used in contravention of paragraph (1).
(3) For the purposes of this regulation— “claim” means a claim for compensation, restitution, repayment or any other remedy or relief in respect of loss, damage or other wrong, whether pursuant to legal proceedings, regulatory schemes (whether voluntary or compulsory) or voluntary undertakings; and “claims management services” means advice or other services in relation to the making of a claim, including— (a) financial services or assistance, (b) legal representation, (c) referring or introducing one party to another, and (d) making inquiries on behalf of another.
Regulation 21B
21B.—(1) A person shall not use, or instigate the use of, a public electronic communications service for the purposes of making unsolicited calls to an individual for direct marketing purposes in relation to occupational pension schemes or personal pension schemes, other than where paragraphs (2) or (3) apply.
(2) This paragraph applies where— (a) the caller is an authorised person or the trustee or manager of an occupational or personal pension scheme, and (b) the called line is that of a subscriber who has previously notified the caller that for the time being the subscriber consents to such calls being made on that line.
(3) This paragraph applies where— (a) the caller is an authorised person or the trustee or manager of an occupational or personal pension scheme, (b) the caller has an existing client relationship with the individual, (c) having regard to that existing client relationship, the individual could reasonably expect calls from that caller in relation to occupational pension schemes or personal pension schemes, and (d) the individual has been given a simple means of refusing such calls free of charge (other than the costs of the transmission of the refusal) both when the details of the individual were initially collected and in every subsequent communication.
(4) A subscriber shall not permit his line to be used in contravention of paragraph (1).
(5) For the purposes of this regulation— “authorised person” has the meaning given in section 31 of the Financial Services and Markets Act 2000; “direct marketing” includes the marketing of products or services that are designed to enable individuals to invest, or otherwise use, their pension funds, give advice about the performance, value or status of such funds, or give advice about the ability to convert such funds into a different pension; “existing client relationship” does not include a relationship which is formed for the purpose of evading compliance with paragraphs (1), (2) and (3); “occupational pension scheme” and “personal pension scheme” have the meanings given in section 1(1) of the Pension Schemes Act 1993.