Regulations when buying shares

njb08

Does anyone know if the distance selling regulations apply when buying shares over the phone? My partner was recently contacted to purchase shares by a broker and we're struggling to find background information on them and they're not registered with the FSA. They claim they're registered with the German equivalent but have an office in London. They also claim that we entered into a verbal agreement with them despite not going through any description of the terms and conditions or cancellation periods prior to 'sale'. Any advice gratefully received.

Lokolo

It's a scam. I hope you didn't give them any money.....

Ark_Welder

Definately a scam. Any cold-call like this always is. The 'verbal contract' is just a way of trying to pressure you into paying - don't!

Report them. If they contact you again then tell them that you have reported them. [edit2] Then put the phone down on them - don't get into a 'discussion' with them.


http://www.fsa.gov.uk/Pages/consumerinformation/scamsandswindles/investment_scams/boiler_room/index.shtml

http://www.actionfraud.org.uk/report_fraud


[edit]
Could you post their company name? Might be able to dig something up - or at least it will warn others to be on the lookout for them

njb08

Ark_Welder wrote: »

Definately a scam. Any cold-call like this always is. The 'verbal contract' is just a way of trying to pressure you into paying - don't!

Report them. If they contact you again then tell them that you have reported them. [edit2] Then put the phone down on them - don't get into a 'discussion' with them.

[edit]
Could you post their company name? Might be able to dig something up - or at least it will warn others to be on the lookout for them

Ascensus Direct is the company name. We argued that they hadn't supplied any verbal or written T&C's before the supposed 'verbal contract' and he said he needed to check back with the correct department. I'm pretty sure they're trying to bamboozle us with information but every avenue we've researched comes back with very limited info. The FSA have said they need to be registered with them to be working from the UK but they insist they function under a new EU regulation so don't need to be with the FSA. My instinct was that it was a scam but I'm in debate with partner about it and the 'firm' are very good at arguing their case...:(
Thanks for the links - very helpful.

fs110

njb08 wrote: »

Ascensus Direct is the company name. We argued that they hadn't supplied any verbal or written T&C's before the supposed 'verbal contract' and he said he needed to check back with the correct department. I'm pretty sure they're trying to bamboozle us with information but every avenue we've researched comes back with very limited info. The FSA have said they need to be registered with them to be working from the UK but they insist they function under a new EU regulation so don't need to be with the FSA. My instinct was that it was a scam but I'm in debate with partner about it and the 'firm' are very good at arguing their case...:(
Thanks for the links - very helpful.

They would do. Very hard to find too much about them which always makes me think twice. I would stay away.

MoneySaverLog

Sounds like a 'Boiler Room' scam

Reaper

It's a standard scam. Despite claims to have "millions of investors" their London address is just a mail forwarding "virtual office".

The FSA is right they are trading illegally in the UK by not being registered so any claimed contract can be ignored. Don't try to reason with them, they will have a scripted answer ready for everything.

Unlike genuine firms expect them to get abusive in a final effort to brow beat you into sending them money. Don't give in.

No legitimate financial company will ever cold call you. All that do are scams.

Ark_Welder

Both the London and Frankfurt 'administrative offices' are virtual, i.e. no physical presence. From the 'London virtual office' web-site...

"...aims to provide affordable virtual office solutions for individuals, businesses & organisations worldwide, seeking to establish a prestigious and professional London presence"

London 'office': http://www.w1office.com/
Frankfurt 'office': http://mygermanadress.de/impressum.html

From what I can make out, the 'head office' is the same address as the German Buddhist Union, 'Deutsche Buddhistische Union'.

Found by searching for post and zip codes and addresses.

njb08

Thanks all. This has confirmed my fears. Thank goodness we haven't yet transferred any funds. We'll be reporting them in the morning...

Credit-Crunched

And people mocked the letters that HSBC sent out

Reaper

Somebody trying to get their post count up. I guess to the level where they can post links.