Shareholders should be very wary of any unsolicited advice, offers to buy shares at a discount or offers of free company reports on the Company.
Many companies have become aware that their shareholders have received unsolicited phone calls or correspondence concerning investment matters which imply a connection to the company.
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 often referred to as 'boiler rooms'.
The brokers can be very persistent and extremely persuasive and a 2006 survey by the Financial Services Authority (now known as the Financial Conduct Authority) (FCA) has reported that the average amount lost by investors is around £20,000. 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.
Shareholders are advised to be very wary of any unsolicited advice, offers to buy shares at a discount or offers of free company reports on the Company.
- Make sure you get the correct name of the person and organisation and make a record of any other information they give you, eg telephone number, address
- Check that they are properly authorised by the FCA before getting involved. You can check the FCA register at www.fca.org.uk or call 0800 111 6768 ( +44 20 7066 1000)
- Report approaches to the FCA – it maintains a list of unauthorised overseas firms who are targeting, or have targeted, UK investors. Reporting such organisations means the list can be kept up to date and appropriate action be considered
- Inform Equiniti, our Registrars on 0871 384 2934 (+44 121 415 7011). They are not able to investigate such incidents themselves, but will record the details and pass them on to Wolseley plc and liaise with the FCA on your behalf.
If you deal with an unauthorised firm, you would not be eligible to receive payment under the Financial Services Compensation Scheme.
Wolseley plc endorses the Shareview share dealing facility, a service offered by our registrars, Equiniti (formerly Lloyds TSB Registrars).
FCA contact information
FCA website: www.fca.org.uk
FCA consumer helpline: 0800 111 6768 (+44 20 7066 1000)
Money advice service website: Money Advice Service