In recent years, many companies have become aware that individuals have received unsolicited phone calls or correspondence concerning investment matters. These are typically from ‘brokers’ who target individuals, offering to sell them what often turn out to be worthless or high risk shares in US or European investments. These ‘brokers’ can be very persistent and extremely persuasive, and a 2006 survey by the then Financial Services Authority reported that the average amount lost by investors is around £20,000.
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. Individuals 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:
- Make sure you get the correct name of the person and organisation.
- Check that they are properly authorised by the Financial Conduct Authority (FCA) before getting involved by visiting https://register.fca.org.uk/ and contacting the firm using the details on the register.
- Report the matter to the FCA either by visiting https://www.fca.org.uk/contact.
- If the calls persist, hang up.
If you deal with an unauthorised firm, you will not be eligible to receive payment under the Financial Services Compensation Scheme.
More detailed information on this or similar activity can be found on the FCA website www.fca.org.uk.
