The FCA has raised “serious concerns” about savers transferring their pensions from workplace schemes to invest in AIM-listed firm Emmit plc.
The regulator says it has been made aware inexperienced investors are being encouraged to move their company pensions to Sipps in order to invest in the company.
It says up to 100 people’s pension savings, worth up to £4m, may be at risk as a result.
According to the FCA, investors are being offered cash incentives by a third party – up to 30 per cent of the transfer value of their pension – when they purchase Emmit shares. It says pension investments have “constituted a significant proportion of the demand for these shares” but is not aware that Emmit is complicit in the activity.
The FCA is also concerned members are being sent statements claiming Emmit shares are currently trading at good value, compared to their normal price.
The London Stock Exchange suspended trading of Emmit shares on 17 October after the FCA raised concerns.
Emmit could not be reached for comment.