Financial Services Authority Taking Action Over Abuse Of The Penny Share Market FSA 23.09.2009 23/09/2009 The FSA’s Director of Small Firms and Contact Division Lesley Titcomb has warned firms selling low value shares to ‘get their house in order’ following reports that some stockbrokers are targeting the over-50s by aggressively marketing shares to them. Firms breaking the rules risk being referred to the FSA’s Enforcement division. Certain stockbrokers target those who already own a few shares acquired through privatisations. In pursuit of earning a commission the stockbrokers may sell shares unsuitable for the buyer’s situation. The FSA advise consumers thinking of buying penny shares that they should familiarise themselves with the risks. Buyers should ask the broker why the particular share is suitable for their circumstances. Advice taken from the stockbroker should be researched and verified. Buyers should also ask about the commission the broker will receive for arranging the deal. Practices adopted by those selling Contracts for Difference (CFDs) will also be scrutinised by the FSA throughout autumn. These high risk investments allow customers to speculate on the movement of share prices but also leave the customer open to losing more than the value of their original investment. Source: http://www.fsa.gov.uk/pages/Library/Communication/PR/2009/123.shtml FSA Press release reference - FSA/PN/123/2009 Entitled: FSA warns penny share customers dated 16 September 2009 If you have any concerns or queries regarding the FSA’s Enforcement process and powers or the issues raised in this article contact Sarah Wallace on 020 7421 3883 or make an online enquiry. Press contact Dave Grimshaw Press Officer 0114 274 4397 Email Dave Related articles 20.03.2019Government Issues Recommendation for Leasehold Reform 15.03.2019Irwin Mitchell Recruits Hundreds Of Volunteers For Red Nose Day 2019 15.03.2019Irwin Mitchell Scoops Hat-trick At Birmingham Law Society Legal Awards 13.03.2019Sheffield City Region Launches Global Innovation Corridor At MIPIM 2019 08.03.2019Irwin Mitchell Launches Women in Law Timeline 05.03.2019Does A Rest Break At Work Have To Be Continuous?