Some details are still missing, but he at least seems determined to get a grip on the prickly, but increasingly painful, nettle of financial fraud.
The move is a timely follow-up to the 2019 pension cold-call ban.
The ban appears to have taken hold and fines for pension telesolicitors have been widely publicized.
Of course, there are some risks here. A ban on cold calling financial instruments may also hurt some legitimate marketing campaigns, but overall it’s a welcome move.
The new fraudulent activity will also include much-needed enhanced anti-fraud measures. The Home Office has set up a new anti-fraud team of 500 investigators and Action Fraud will be replaced by his £30m fraud reporting service.
These are all steps in the right direction, but they will not eliminate one of the UK’s biggest criminal problems: financial fraud.
There are clear signs that many of Britain’s police are struggling to deal with fraud that can take years to prosecute.
The move also does not crack down on the growing number of cold calls from abroad, with persistent and determined scammers constantly ignoring or circumventing the rules.
But the government has rightly woken up to the enormous threat that financial fraud poses to the UK economy, not to mention the many elderly and vulnerable savers who have been robbed of their hard-earned savings.
As Sunak himself said, financial fraud now costs the country £7bn a year and nine out of ten UK internet users are targeted by online fraud. Most of us have stories of friends and acquaintances who have been victimized.
But many financial planners may wonder if it has anything to do with them.
The corrosive effect of all forms of financial fraud destroys consumer confidence above all else. How many people have put off investing and saving because they can’t find someone they can trust? For this reason, they are wary of financial advisors. There is no government endorsement of trusted advisors.
This new initiative deserves expert endorsement. Reducing financial fraud is not only good for building consumer trust, it’s also good for financial advice professionals.
• Closed on Mondays due to the Coronation Bank Holiday. If you are celebrating the event in some way, have a great time. If you’re taking a break, enjoy the second of three bank holidays this weekend. Not long until next time!
Kevin O’Donnell is the editor of Financial Planning Today and has worked as a journalist and editor for over 30 years.