Financial Services Authority warns about two unauthorised firms

• Jackson Cole; and

• Smith Fairchild

The FSA is not seeking to imply that any of the firms listed above would necessarily adopt the tactics described below.

In recent months two further tactics to target and defraud UK investors have come to the FSA's attention. Firstly investors are increasingly being targeted by unauthorised firms at their place of work. This has particularly been happening in small businesses. Typically callers will request the managing director or the finance director but in their absence they will use their high pressure sales technique on any employee. Such approaches, like any others should be treated with care.

Secondly, more and more investors who bought shares through unauthorised overseas firms are being targeted by unscrupulous overseas firms or individuals who offer to sell their shares. The service is only provided if the investors pay an upfront administration fee. However, once the investors have parted with their money they are left out of pocket as they never hear from the firm again.

Andrew Procter FSA Director of Enforcement warns:

"Companies contacting you out of the blue at work or at home offering to sell or buy shares should be treated with care. Don't be taken in by their glib promises of sky high profits or the fact that they appear to have UK phone numbers and addresses. Usually, the profits turn to losses and the UK address and telephone number is merely a post box and a switchboard. So, if there is a problem these companies are nowhere to be seen and your money has gone. Instead take your time to check with us whether that company is authorised to offer financial services before handing over your money. Dealing with firms that are not authorised is a high-risk business as there are no complaints and compensation schemes to turn to if your deal turns sour. "

The FSA will in future issue one-off alerts on its website www.fsa.gov.uk/enforcement. The alerts will be issued as and when the FSA becomes aware that unauthorised firms are actively targeting UK investors.

FSAs list of overseas unauthorised firms targeting UK investors as at April 2003

K P Allen

Berkshire Tax Consultants

Cambridge Global Inc

Carter James SL

Chamberlin Management Inc

Chapman Foster Group SL

Condor Research

Fielding Clifford

First Chartered Capital Corp/First Colonial Trust

Globeshare

Hamilton Asset Management

Hoffman Philips SL

Hopkins, Pierce & Co Limited

Hyda Florsbanc

Jefferson Management

Kline Management Group

Livingstone Asset Management

Mercantilebanc Securities Inc

Millennium Financial Ltd

Morgan Young Financial Consultants

Morrison Cross Financial Investments Ltd

Norwich Capital Mutual Funds Limited

Pacific Federal SA

Phoenix Asset Management SA

Phoenix Partners SL

Premier Equities Limited

Reichman Advisory SL

Smith Fairchild

Stanley Riebeck Corporation

Stein Banc Commerce

Sukomo (also sometimes spelt as: Sukumo) Group

Thibault Capital Markets

Trident Market Advisors

Union Partners SL (formerly Goldberg Kravitz SL)

Walker Stone

Waterhouse Scott Ltd

Webster, Cohen & Galombik Inc

West Shore Ventures Limited

Willmont Financial SL

Windsor Asset Management

World Trade Financial Corporation

Notes for editors

1. The FSA has previously warned about dealing with unauthorised firms in May 2000, May 2002 and April 2003.

2. The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; the protection of consumers; and fighting financial crime.

3. The FSA aims to maintain efficient, orderly and clean financial markets and help retail consumers achieve a fair deal.