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FSA issues ‘boiler room’ scam warning

The FSA today warned of a new tactic used by boiler rooms to con both investors and UK small businesses out of their money.
Boiler rooms use high-pressure selling techniques to persuade UK investors to purchase shares in companies that are usually based overseas. Boiler rooms are not authorised by the FSA and act illegally by selling and promoting the sale of shares in the UK. In the majority of cases, the shares being sold are worthless and the boiler room vanishes, leaving the investor out of pocket. But the FSA is aware of a new trend where some boiler rooms are selling shares in companies based in the UK.
In some circumstances, the investor can demand a refund from the UK company, which may then be required to pay back the full price of the shares sold, even though it only received a percentage of the takings.
David Mayhew, acting director of enforcement at the FSA, said: “This is a new money-making scam by boiler rooms. It is particularly worrying, not only because investors are being enticed to pay over the odds for the shares but the UK company whose shares are being sold by a boiler room could potentially face financial losses and damage to its reputation. “



Exchange launches new GI tool

The Exchange has launched a new online GI product research tool in conjunction with Defaqto.The product, Infowise, is the latest extension to Defaqtos online product range and will give Exchange users real-time access to product data including terms and conditions for household, motor, travel, creditor protection and commercial insurance policies.Product information can also be printed […]

F&C appointed to manage 1.2bn of Swiss Life UK insurance assets

F&C is appointed to manage 1.2bn of Swiss Life UK insurance assets, in a contract effective from July 1 2005. The appointment follows a tender process resulting from the sale of Swiss Life Groups UK life insurance business to Resolution Life Group.F&C manages 78.6bn of assets for European insurance clients, including Resolution Life Group, Friends […]

WMS launches multi-wrap solution

Wealth Management Software has launched a multi-wrap solution designed to accommodate the requirements of A-day.The LISA multi-wrap solution includes support for equities, bonds, funds, Isas, Peps, property asset management, child trusts and A-day pensions including income drawdown.It also includes Internet based client reporting, portfolio modelling, performance measurement, document management and business process modelling and management.WMS […]

Global energy: positioning for a recovery in the oil price Š

Richard Hulf explains how he and John Dodd have positioned the Artemis Global Energy Fund and where they are finding opportunities. Richard explains how he and John are changing the complexion of the fund to focus on the most efficient oil producers. As he tells journalist Alexis Xydias, in this environment of lower prices, he […]


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