2 May 2008
02 May 2008
Brewin Dolphin, the UK’s largest independent provider of private client investment management and financial planning services, has today warned investors to be on their guard against so-called ‘boiler room’ fraud following revelations by BBC’s Working Lunch programme that more than 500 Spanish could be currently targeting the UK.
Boiler rooms, small companies who use high-pressure sales techniques to encourage the public to buy shares that often turn out to be of little or no value, have become an increasing problem in recent years.
Brewin Dolphin is reminding investors of the benefits of transferring shares to nominee accounts, which removes their name from the public domain, making them invisible to fraudsters.
Charlotte Black, Director of Group Corporate Affairs, Brewin Dolphin said: “It is crucial investors ensure they only trade through companies that are fully compliant with FSA regulations. Investors should only accept financial advice or enter into transactions with qualified financial advisers. With a bewildering array of investment options available, investors should seek professional advice to ensure the financial products selected are tailored to their own needs and risk profile.”
Brewin Dolphin has warned in the past about the dangers of ‘boiler rooms’, and indeed, how to avoid falling foul to fraudulent activity. Its legal department works closely with the Financial Services Authority (FSA) to prevent clients, and the industry, from becoming victims to financial fraud.
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For more information, contact Damian Kerr on 0845 213 3026 or damian.kerr@brewin.co.uk
About ‘Boiler Rooms’:
The objective of boiler rooms is to sell shares that either have no value, or if they do have value there is most probably a lock-in period or the price will be vastly inflated. The criminals steal funds through making a high pressured cold call to the investor, whose details are often obtained from shareholder registers at the Companies House. The unsuspecting investor is persuaded into parting with their hard-earned money, with the belief that they are on the verge of seeing their shares rocket in value. In fact, the laundered money goes directly into the pockets of the fraudsters.
One of the most common scams is the request for assistance in transferring foreign money (advanced fee fraud). All that is required of you is the use of your bank account, into which impressively large sums of money will be transferred and then withdrawn, leaving behind a residue of between 10% and 20% of the original sum. In reality what actually happens is that, just before the transfer takes place, you will be asked to pay an advance fee in order to set the deal up and prove your worth. If you pay, you will a) never see your money again, and b) receive a further demand(s) for cash. If you do not cooperate at this stage, your bank account will be emptied.
About Brewin Dolphin
Brewin Dolphin Limited (“BD”) is the principal operating company of Brewin Dolphin Holdings PLC which is listed on the London Stock Exchange. BD is authorised and regulated by the Financial Services Authority and is a member of the London Stock Exchange.
BD is the largest independent private client investment manager in the UK. The Group manages £21.6 billion of funds for over 120,000 clients, and of this £10.7 billion is on a discretionary basis. BD has 39 offices and is corporate adviser to 131 corporate and 100 institutional clients. Brewin Dolphin Investment Banking was voted AIM Broker of the Year 2007.1
The Group provides complete investment management for private investors, charities and pension funds and trades as:
Brewin Dolphin in England, Wales and the Channel Islands
Bell Lawrie in Scotland and Northern Ireland
Stocktrade is the BD Execution-Only division. www.stocktrade.co.uk
Please see Media Centre section on www.brewindolphin.co.uk for details and photos of all commentators and analysts throughout the BD Group.
1. Brewin Dolphin Investment Banking was voted Broker of the Year 2007 at the Investors Chronicle AIM Investment Awards, in association with the FT.