The FSA is urging UK listed companies to protect their shareholders from boiler room scams by sending them warnings.
As part of the initiative, which has been launched in conjunction with the Institute of Chartered Secretaries and Administrators (ICSA), the FSA and ICSA have produced an updated information leaflet for firms to send to their shareholders.
Boiler rooms are high pressure sales firms that target investors illegally and offer non-tradable, overpriced and non-existent shares.
The FSA says boiler room scams usually target existing company shareholders by obtaining a list of shareholders.
The updated leaflet contains information about how to spot boiler rooms and what investors should do if they are contacted by one.
Jonathan Phelan, head of retail enforcement at the FSA, says: "Shareholders are targeted heavily in these scams and raising awareness is the most effective way of putting these companies out of business.
"It is in everyone’s interest to ensure that people only deal with authorised brokers when buying shares.”
The FSA says shareholders can take practical steps to avoid becoming victims of boiler room scams.
Investors should always check if a firm offering shares is FSA authorised, it says, and should contact the regulator immediately if any company cold-calls to sell shares.
If you would like to comment on this story, contact:
Tel: 020 7484 9805
e-mail: [email protected]
Smoking biggest culprit; obesity second
Average earner will gain £840 in 2018
Will also move heritage items
Responding to letter from Treasury Committee chair Nicky Morgan