HMRC is set to deregister up to 500 'dubious' pension providers as part of a clampdown on so-called 'pension liberation' schemes, which offer early access to retirement funds.

Speaking yesterday at a Financial Conduct Authority (FCA) conference, Felicity Johnson, FCA manager of intelligence interface, said the multi-agency pension liberation taskforce, Project Bloom, had stepped up its bid to put an end to pension liberation over concerns about fraud and inappropriate advice.

Johnson said HMRC is reviewing its registration procedures for providers and will shortly be deregulating hundreds of providers.

She said the Serious Fraud Office (SFO) had a number of ongoing investigations in this area and that the Serious Organised Crime Agency (Soca) was currently dismantling a number of pension liberation websites.

Project Bloom's members include the Pensions Regulator, the FCA, DWP, HMRC, Soca, SFO, National Fraud Authority, City of London Police and the Information Commissioner's Office.

Johnston said Project Bloom's work was focused on three key areas: enhanced public awareness, private sector engagement and enforcement. She said as part of the private sector engagement work the FCA was reviewing the activity of all Sipp providers.

An HMRC spokesman said: 'The vast majority of pension funds abide by their legal obligations but we won't hesitate to deregister a pension scheme where rules are not adhered to.'

The spokesman told the Financial Times that if a scheme is deregistered, its administrator will be liable to a tax charge of 40% of the total sums and assets held immediately before deregistration.