Aggressive Tactics Used to Withdraw Pension Funds Prompt Regulatory Action
Translated & summarized from Haaretz by baba
New regulations require institutional entities to warn clients before they withdraw pension funds, aiming to curb "fixers" who charge excessive fees. A saver named Rina received aggressive voicemails from a company assisting with pension withdrawals. The effectiveness of the new measures against this "national plague" remains to be seen.
The story in 5 lines · by baba
- New regulations require institutions to warn clients before pension withdrawals, effective Monday.
- "Fixers" charge high fees for accessing accessible pension funds, harming savers.
- A saver named Rina received aggressive voicemails from a pension withdrawal assistance company.
- The Capital Markets Authority is implementing the new measures.
- The article questions the effectiveness of the regulations against this practice.
A phenomenon of "fixers" has emerged in recent years, offering to help individuals locate "lost funds" but instead charging exorbitant fees for accessible pension money, thereby harming savers. In response, new regulations mandated by the Capital Markets Authority took effect on Monday. These rules require institutional entities to contact clients and warn them before they withdraw funds. The article questions whether this measure will effectively curb this "national plague."
One aggressive voicemail received by a saver, identified as Rina (a pseudonym), exemplifies the tactics employed. A representative from a company, which Rina later discovered was involved in assisting with pension withdrawals, questioned her understanding of the process, asking, "What did you think you were getting? What is not harming the pension fund? What did you think I was taking from the employer? Grants?"
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