UK shareholders will receive warning leaflets in the post from next month as part of a targeted campaign to clamp down on bogus stockbroking firms pushing shares that are either worthless or non-existent.
The Financial Services Authority is working with the Institute of Chartered Secretaries and Administrators Registrars Group to produce a leaflet on “boiler room” scams which will be sent in October to all shareholders of UK- quoted companies. This is to tackle the fact that many boiler rooms obtain their targets from shareholder lists available at Companies House.
The campaign follows a recent run of investigations by the FSA into companies that have been aiding overseas bogus stockbroking firms. Last week the High Court ordered Securetrade & Title to liquidate after it found that the company had acted as an unauthorised agent to a number of boiler rooms operating overseas. After making a sale, boiler rooms would then pass on details of investors and purchase agreements to the company which would collect payments and arrange the issue of share certificates.
See full Article (paid subscription required).
Posts
