Boiler room scams

Guidance to shareholders

Recently within the market a number of companies have been contacted by shareholders who have received unsolicited phone calls or correspondence concerning investment matters. While some communications may be genuine, others may be an example of a 'boiler room fraud' specifically designed to illicit monies from investors by convincing them to buy overpriced, un-tradable or non-existent shares. Further information on the operation of boiler room frauds is available on the FCA website

The FCA provides a list of regulated firms that must adhere to certain standards through which it is recommended to deal. These firms are covered by the Financial Ombudsman Service complaints procedure and may provide access to compensation schemes.

If you choose to deal with an unregistered firm then you won't have access to these procedures.

Visit the FCA website to access the register of regulated firms and their agents.

To reduce the potential risk of fraud happening to you, please consider the following:

  • Be very wary of any unsolicited advice
  • If you are buying or selling shares, only deal with brokers registered in the UK
  • Ensure all your certificates are kept in a safe place
  • Keep all correspondence from the Registrars which contain your shareholder reference number in a safe place. Destroy correspondence by shredding
  • If you change your address inform the Registrars. If you receive a letter from the Registrars regarding a change of address and have not recently moved house, please contact them immediately. You may be the victim of identity theft
  • Know, if dividends are due, when dividends are paid. Consider having any investment dividends paid directly into your bank to reduce the risk of cheques being intercepted or lost in the post. If you change your bank account, inform the Registrar of the details of your new account. Respond to any letters the Registrar sends you about this

You may contact Computershare Investor Services

Tel: 0870 707 1340

www.computershare.com

To contact the registrars visit Computershare Investor Services

To report Fraud and Internet Crime you can also contact: www.actionfraud.police.uk

For further information please refer to the FCA guidance at www.fca.org.uk