Share fraud warning
Warning to shareholders – share fraud and boiler room scams
In recent years, a number of other companies have become aware that their shareholders have received unsolicited phone calls or correspondence concerning investment matters. These are typically from overseas based 'brokers' who target UK shareholders, offering to sell them what often turn out to be worthless or high risk shares in US or UK investments. These operations are commonly known as 'boiler rooms'. These 'brokers' can be very persistent and extremely persuasive.
We are not aware of any Melrose investors having been targeted, but we would urge you to remain vigilant. It is not just the novice investor that has been duped in this way; many of the victims had been successfully investing for several years.
The Financial Conduct Authority (FCA) has found most share fraud victims are experienced investors who lose an average of £20,000, with around £200m lost in the UK each year.
Shareholders are advised to be very wary of any unsolicited advice, offers to buy shares at a discount or offers of free company reports.
If you are contacted:
- Make sure you get the correct name of the person and organisation and make a record of any other information they give you. e.g. telephone number, address, web address;
- Check the caller is properly authorised by the FCA before getting involved by visiting www.fca.org.uk/register
- If the caller persists, hang up;
- Report the matter to the Financial Conduct Authority
The Financial Conduct Authority
The FCA can be contacted in respect of unauthorised firms by completing an online form available by clicking on the link below, or by calling 0845 606 1234.
If you deal with an unauthorised firm, you will not be eligible to receive payment under the Financial Services Compensation Scheme.
FCA Online reporting form
Further information on how to avoid share fraud may be found on the 'FCA leaflet on share fraud' (PDF format).