In recent years, many companies have become aware that their shareholders have received unsolicited phone calls or correspondence concerning investment matters.

These are typically from overseas-based ‘brokers’, working for firms that have become known as ‘boiler rooms’, who target shareholders, offering to sell them what often turn out to be worthless or high risk shares.

These ‘brokers’ can be very persistent and extremely persuasive. Around 5,000 people contact the Financial Conduct Authority (FCA) about share fraud each year, with victims losing an average of £20,000. It is not just novice investors who have been duped in this way. Many victims have been successfully investing for several years. Shareholders are advised to be very wary of any unsolicited advice, offers to buy shares at a discount or offers of free company reports. If you receive any unsolicited investment advice, the FCA recommends that you:

• Reject unexpected offers
• Check the FCA Warning List
• Obtain impartial advice

If you are suspicious, you can report a firm or potential fraud to the FCA on 0800 111 6768 or through www.fca.org.uk/scamsmart.

If you are in any doubt about the validity of an apparent communication from the company or any of its directors or employees please do not hesitate to email us at enquiries@caledonia.com or telephone on +44 20 7802 8080.