The
Financial Services Authority (FSA) has issued a new warning to investors about ten "recovery firms".
It has warned investors who have bought shares through Pacific Continental Securities, a firm which entered administration in June 2007 and has since gone into liquidation.
The FSA claims that many people who invested in the now-deceased firm have complained that they are being contacted by cold-callers, who offer to either buy the shares or find them a buyer for them, with the investor paying an advance fee.
Known as recovery firms, these companies are not UK-based and not regulated by the FSA to "promote financial services".
"This is a scam - as soon as the fee is paid, the firm disappears with the money and without purchasing the shares," warns the FSA.
Data from the Lloyds TSB Wealth Management survey recently showed that 28 per cent of investors have transferred money into more cautious investments over the last six months.
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