Concerns Over Clone Investment Firms
Clone investment firms are on the rise, according to new figures from the FCA. Clone firms operate by mimicking genuine companies, and employing aggressive sales tactics, including cold calling, to secure investments. Those in question effectively ‘piggyback’ on the brand and heritage of existing firms; as an example the FCA has reported that one of the latest scams is calling itself GE Wealth Management, with the genuine company trading as G & E Wealth Management Limited. Some fraudsters are going one step further, by using the names of employed individuals in genuine firms to lend credence to their scam.
This news again highlights the importance of personal service and working with a trusted adviser. Please do be aware that in any dealings with The Fry Group you will be contacted by someone known to you, and we do not, and would never, employ any cold calling techniques.
It is worth noting that unauthorised firms do not offer the same protection as genuine investment companies, and therefore the Financial Ombudsman Service or Financial Services Compensation Scheme would not have any scope for involvement. To discuss any of these matters further, do get in touch.