Cold Calling (2002-06-01)

Summary

This is a 2002 public warning notice from the Guernsey Financial Services Commission alerting Bailiwick residents to the practice of cold calling by investment businesses not based in Guernsey. It does not create new regulatory rules but restates the existing licensing requirement and advises investors on precautions before acting on an unsolicited investment call.

• Licensing requirement: Firms wishing to conduct investment business within the Bailiwick must be licensed by the Commission; unlicensed cold callers may be involved in illegal schemes.
• No compensation protection: The Guernsey Investor Compensation Scheme does not cover losses arising from unlicensed promotions.
• Investor checklist: Before investing on the basis of a cold call, investors should check with the Commission, independently research the investment, and consider advice from a licensed professional.
• Warning sign: Investors should be sceptical of promises of spectacular or guaranteed returns.

The notice provides contact details for the Commission's Investment Business Division for residents wishing to verify a caller's licence status or seek further guidance.

Applies to

investment businesses