Financial Conduct Authority - Boiler Room Scams
In recent years, many companies have become aware that their shareholders have received unsolicited phone calls or correspondence concerning investment matters. These are typically from overseas based ‘brokers’ who target UK shareholders, offering to sell them what often turn out to be worthless or high risk shares in US or UK investments. These operations are commonly known as ‘boiler rooms’. These ‘brokers’ can be very persistent and extremely persuasive, and a 2006 survey by the Financial Conduct Authority (FCA) has reported that the average amount lost by investors is around £20,000.
In the last few years many of our Shareholders have take the time to contact us regarding these scams, which can be very intimidating for some investors.
It is not just the novice investor that has been duped in this way; many of the victims had been successfully investing for several years. Shareholders are advised to be very wary of any unsolicited advice, offers to buy shares at a discount or offers of free company reports. If you receive any unsolicited investment advice:
What should you do?
- If you can, get the name of person who is calling you and the name of organisation.
- Visit www.fca.org.uk/consumers/scams-and-swindles to find out what to do if you are scammed and 'how to report a scam'.
- The FCA website provides a telephone number for Shareholders to contact should they need to