FSA takes action on recovery firm scam

Many investors who originally bought shares through Pacific Continental have complained to the regulator that they are being 'cold-called' by firms offering to buy the shares, or to put them in touch with a buyer - for a fee. These so called 'recovery firms', often calling from outside the UK, are not authorised by the FSA and are not permitted to approach UK consumers to promote financial services. Commonly known as 'recovery rooms', these firms offer to buy the shares at an attractive price but demand an advance fee. The FSA asserted that this is a scam - as soon as the fee is paid, ...