THERE HAS been a 100 per cent jump in the number of complaints received by the Central Bank from people who have been contacted by firms offering them the opportunity to buy or sell shares in another company.
According to the Central Bank, which regulates all investment firms operating in Ireland, these so-called “boiler room” firms usually promise a high rate of return relative to the initial investment made.
Typically the firms in question are unauthorised investment firms operating overseas.
Shareholders, in particular, are often targeted by such firms, which can obtain investor information by accessing publicly available shareholder lists.
According to the Central Bank, members of the public who deal with unauthorised investment firms have no recourse to the Investor Compensation Scheme, the State scheme which provides investors with funds in the event of the failure of an investment firm.
The Central Bank is advising members of the public and shareholders who receive such unsolicited contact to check the regulatory status of such firms with it.
It notes that it is a criminal offence for an investment firm to operate in Ireland unless it has authorisation from the Central Bank.
Members of the public can check if an investment firm is authorised or pass on information regarding such firms by calling the Central Bank on 01-2244000.
