The Government looks to introduce fines on cold-calling.
The UK Government is proposing plans that could see personal fines of up to £500,000 handed out to company directors to cut down on “nuisance” cold calls, including those from financial advisers and pension providers.
Under existing law, companies found to have made unwanted calls or texts are subject to fines of up to £500,000. The problem is that many business owners are evading these fines by liquidating their companies and starting over, a practice that has seen almost half of fines go unpaid.
Ofcom estimates that last year alone, British consumers received 3.9 billion cold calls and texts, prompting Minister for Digital and the Creative Industries Margot James to declare: “Nuisance calls are a blight on society, and we are determined to stamp them out.” She is now proposing that bosses be personally liable in addition to paying company fines, bringing the maximum penalty up to £1m for the most extreme cases. This proposal is the latest in a series of measures designed to make it easier to investigate and penalise breaches to the law.
What does this mean for financial services?
A ban on cold calling in relation to financial claims management services and pension providers is already in force, and funding is also in place to install call-blocking devices for the most vulnerable.
If cold calling is part of your financial adviser lead generation strategy, then it may be time to implement new marketing tools to save your company and yourself from these penalties. The message is clear – consumers have lost patience with traditional methods, and they want companies to reach them in more meaningful ways.