Cold Calling Reminder (2005-12-12)

Summary

This is a public warning notice issued by the Guernsey Financial Services Commission alerting Bailiwick residents to unsolicited investment sales calls ('cold calling') from firms without a local place of business. It does not impose new regulatory obligations but reiterates existing licensing requirements and offers guidance to potential investors on protecting themselves.

• Licensing reminder: Firms conducting investment business within the Bailiwick must already be licensed by the Commission; cold callers may lack such a licence.
• 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 are urged to check the caller's licensing status 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 is primarily consumer-facing, directing residents to verify licensing status via the Commission's website or by contacting its Investment Business Division, rather than creating compliance duties for regulated firms.

Applies to

investment businesses, Bailiwick residents/potential investors