We have become aware that, in recent weeks, shareholders have been receiving unsolicited telephone calls concerning their investment in Babcock.
Unfortunately, in recent years, the shareholders of many companies have been targeted in this way with shareholders receiving unsolicited phone calls or correspondence concerning investment matters. These are typically from overseas based 'brokers' who target UK shareholders, offering to buy their shares at a discount and/or sell them what often turn out to be worthless or high risk shares in US or UK companies. These operations are commonly known as 'boiler rooms'. These 'brokers' can be very persistent and extremely persuasive.
We advise all our shareholders to be very wary of any unsolicited advice, particularly when offers to buy shares at a discount are made.
If you receive an unsolicited approach:
- Make sure you get the correct name of the caller and the name of his firm
- Check that his firm is authorised by the Financial Services Authority (the FSA) before getting involved by visiting www.fsa.gov.uk/pages/register/index.shtml
- Do double check the caller is from the firm that he says he is - by calling him back on the contact number listed on the FSA Register
- If you have any doubts, call the FSA Consumer Helpline on 0845 606 1234
- If the calls persist, hang up
If you deal with an unauthorised 'broker', you will not be eligible to receive payment under the Financial Services Compensation Scheme.
More detailed information on 'boiler rooms' or similar activity can be found on the FSA website at www.fsa.gov.uk/pages/consumerinformation/scamsandswindles/index.shtml