Pacific Continental shareholders targeted by 'recovery firms'.

The Financial Services Authority (FSA) has issued an alert that at least ten ‘recovery firms’ are targeting a scam at investors who bought shares through Pacific Continental Securities (UK) Ltd (Pacific Continental).

Pacific Continental went into administration in June 2007 and moved from being in Administration to being in Creditors' Voluntary Liquidation on 21 March 2008.

Many investors who originally bought shares through Pacific Continental have complained to the FSA that they are being 'cold-called' by firms offering to buy the shares, or to put them in touch with a buyer - for a fee.

These so called 'recovery firms', often calling from outside the UK, are not authorised by the FSA and are not permitted to approach UK consumers to promote financial services.  Commonly known as 'recovery rooms', these firms offer to buy the shares at an attractive price but demand an advance fee.

This is a scam - as soon as the fee is paid, the firm disappears with the money and without purchasing the shares.

The FSA is looking into the complaints.

The FSA publishes a list of unauthorised firms, along with information about share scams on its consumer website, Money Made Clear.

Consumers and investors should only deal with firms authorised by the FSA otherwise they will have no rights to complain or claim compensation.

Advice to SMEs:

• Always check the FSA Register first before dealing with a firm.

•  If you have been contacted by an unauthorised firm, please let the FSA know by calling its Consumer Contact Centre on 0845 606 1234 or completing an online reporting form.

• 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; securing the appropriate degree of protection for consumers; and fighting financial crime.

• The FSA aims to promote efficient, orderly and fair markets, help retail consumers achieve a fair deal and improve its business capability and effectiveness.

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