Cold Calling - 1 June 2002 The Guernsey Financial Services Commission has recently investigated a number of cases where Bailiwick residents have received unsolicited telephone calls from staff of investment businesses that do not have their place of business in the Bailiwick.
The practice, where a person makes an unsolicited call to a potential investor seeking to sell them investments during the course of that call, is known as "Cold Calling".
Firms that wish to conduct investment business within the Bailiwick must be licensed by the Commission in order to do so. Cold calling organisations may not have the necessary licence and may even be involved in illegal investment schemes which may result in investors losing money.
Residents should be aware that the Guernsey Investor Compensation Scheme does not offer protection against loss arising from unlicensed promotions. Therefore, the Commission strongly urges Bailiwick Residents not to make an investment purely as the result of an unsolicited approach. As a minimum, before committing any money, potential investors should check whether the caller is licensed by the Commission to conduct investment business. For those people with access to the Internet, a list of current Bailiwick licensees can be found on the Commission's website (Licensees and Funds). Alternatively, potential investors can telephone the Commission and speak to a member of the Investment Business Division who will be pleased to assist with such queries.
Before investing on the basis of a cold call, investors should follow the checklist below:
INVESTORS CHECKLIST
• Check with the Guernsey Financial Services Commission;
• Independently research the investment; and
• Consider getting advice from a licensed professional.
Potential investors should always be sceptical if the cold caller promises spectacular returns or "guaranteed" profits. The old adage holds true "if the deal sounds too good to be true, it probably is".
Enquiries to:
Peter Moffatt, Director of Investment Business
Tel: 01481 712706
Fax: 01481 712010
International dialling code - +44 1481
1 June 2002
Cold Calling Investment Scam - 22 July 2003 The Commission has had a new twist to an investment scam brought to its attention and wishes to warn local investors about it.
Over the past few years a number of local residents have been "cold called" by brokers from outside the Island attempting to get people to invest in shares in small overseas companies. The general pattern has been for the value of these thinly traded shares to dwindle and for the investor to be stuck with them either not wishing to realise the loss or simply finding it impossible to sell. In some cases investors have not been properly registered as shareholders.
A recent development that has been reported is for the investors to be contacted by a different overseas broker who offers to buy their shares at an inflated and very tempting price. However, before the deal can be completed, the investor is asked to provide a substantial amount of money for a "refundable bond" and they are asked for their bank account details. Far from resulting in recovery of the investor's money, responding to this kind of approach is likely to lead to even greater losses.
Firms conducting investment business in the Bailiwick are required to be licensed by the Commission to do so. If residents are approached by cold callers or by follow up operations as described above, they are strongly advised to contact the Investment Business Division or Enforcement Division through the switchboard number of 712706.
The Commission's warning from June 2002 about cold calling can also be viewed by clicking on the article called "Cold Calling - 1 June 2002" which can be found at the bottom of this list. Similar warnings and advice on other types of investment scams have been issued by other international regulators including the Australian Securities and Investments Commission and the United States Securities and Exchange Commission.
The Commission advises that investors do not part with any money on the back of such approaches. However, if anyone has paid over any money in these circumstances they are asked to contact the Commission's Enforcement Division with details. Cold Calling Reminder - 12 December 2005 The Guernsey Financial Services Commission has recently investigated a number of cases where Bailiwick residents have received unsolicited telephone calls from staff of investment businesses that do not have their place of business in the Bailiwick.
The practice, where a person makes an unsolicited call to a potential investor seeking to sell them investments during the course of that call, is known as "Cold Calling".
Firms that wish to conduct investment business within the Bailiwick must be licensed by the Commission in order to do so. Cold calling organisations may not have the necessary licence and may even be involved in illegal investment schemes which may result in investors losing money.
Residents should be aware that the Guernsey Investor Compensation Scheme does not offer protection against loss arising from unlicensed promotions. Therefore, the Commission strongly urges Bailiwick Residents not to make an investment purely as the result of an unsolicited approach. As a minimum, before committing any money, potential investors should check whether the caller is licensed by the Commission to conduct investment business. For those people with access to the Internet, a list of current Bailiwick licensees can be found on the Commission's website www.gfsc.gg. Alternatively, potential investors can telephone the Commission and speak to a member of the Investment Business Division who will be pleased to assist with such queries.
Before investing on the basis of a cold call, investors should follow the checklist below:
INVESTORS CHECKLIST
• Check with the Guernsey Financial Services Commission;
• Independently research the investment; and
• Consider getting advice from a licensed professional.
Potential investors should always be sceptical if the cold caller promises spectacular returns or "guaranteed" profits. The old adage holds true "if the deal sounds too good to be true, it probably is".
Enquiries to:
Peter Moffatt, Director of Investment Business
Tel: 01481 712706
Fax: 01481 712010
International dialling code - +44 1481
12 December 2005 Guernsey International Financial Services Commission - 10 September 2007 GUERNSEY INTERNATIONAL FINANCIAL SERVICES COMMISSION,
INTERNATIONAL FINANCIAL SERVICES CERTIFIED PAYMENT LIABILITY COVERAGE,
IFSP & LC CERTIFICATION DECLARATION FORM
The Commission has become aware of a scam in which victims are asked to pay a fee in order to obtain “Certified Payment Liability Coverage” from the “International Financial Services Commission”, to enable funds to be released.
The address given corresponds with that of the Guernsey Financial Services Commission but there is no such entity as the International Financial Services Commission in Guernsey. The Guernsey Financial Services Commission is not involved in “Certified Payment Liability Coverage” or in the authorisation of the release of funds to individuals by financial institutions.
Extreme caution should be used in dealings with anyone requesting advance payment for the release of funds, or any entity associated with such requests. These scams are often associated with bogus banks and may use websites which mimic those of genuine entities. St James Global Limited and Joseph Coutts - 11 January 2008 It has recently come to the attention of the Commission that Joseph Coutts, the former shareholder and managing director of St James Global Limited, may be trading as an insurance intermediary under the name St James Global from Monaco. The Commission understands that he may be trying to contact former clients of St James Global Limited to promote new products. St James Global Limited is a Guernsey company that was previously licensed to undertake insurance intermediary business. The Commission understands that there is also a legitimate South African company called St James Global Financial Services Pty Limited.
The public should be aware that St James Global Limited was placed into compulsory liquidation by the Royal Court on 20 December 2006 and the Guernsey Financial Services Commission revoked its licence to act as an insurance intermediary in or from within Guernsey on 20 December 2007.
The public should be aware that Mr Coutts was convicted in December 2006 of attempting to obtain money by deception. He was also disqualified for 11 years by the Royal Court in Guernsey in October 2007 from being a director or other officer of any Guernsey company and from participating in, or being in any way concerned in, directly or indirectly, the management, formation or promotion of any Guernsey company.
Peter Neville
Director General
11 January 2008
Note: For further details of Mr Coutts’ disqualification, please refer to the Commission’s press release of 15 October 2007 found here. CL Investing Limited / CL Investing Asset Management Company - 16 September 2009 It has been brought to the Commission’s attention that the above-named entity is operating a website with an address of www.cl-investing.com. The web site indicates that CL INVESTING provides offshore multi–manger funds which are structured as Protected Cell Companies (PCCs) domiciled in Guernsey.
The purpose of this notice is to warn potential investors that the company is not licensed, authorised or in any way regulated by the Commission for the conduct of any financial services business in or from within the Bailiwick of Guernsey.
Investors are urged to use extreme caution when unsolicited contact is made by companies offering investment opportunities and are advised to always check the regulatory status of a company before entering into any contract.
If you require further guidance please contact the Commission’s Intelligence Team on (+44 1481 712706). Crystalix London Limited / Crystalix London Asset Management Company - 7 October 2009 It has been brought to the Commission’s attention that the above-named entity is operating a web site with an address of www.crystalixlondon.com.The web site indicates that CRYSTALIX LONDON provide offshore multi–manger funds which are structured as Protected Cell Companies (PCCs) domiciled in Guernsey.
The purpose of this notice is to warn potential investors that the company is not licensed, authorised or in any way regulated by the Commission for the conduct of any financial services business in or from within the Bailiwick of Guernsey.
Investors are urged to use extreme caution when unsolicited contact is made by companies offering investment opportunities and are advised to always check the regulatory status of a company before entering into any contract.
If you require further guidance please contact the Commission’s Intelligence Team on (+44 1481 712706). Guernsey Corporate Secretaries Limited - 7 October 2009 The above named company is a company incorporated under the laws of The Bahamas with registration number 34,965B. The purpose of this notice is to clarify that Guernsey Corporate Secretaries Limited is not a Guernsey company, nor is it licensed, authorised or in any way regulated by the Commission to carry out corporate secretarial or other regulated fiduciary activities under The Regulation of Fiduciaries, Administration Businesses and Company Directors, etc. (Bailiwick of Guernsey) Law, 2000. Reality Millions - 7 October 2009 It has been brought to the Commission’s attention that a website has been operating using the trading name of Reality Millions. The site claims that an entity registered as an “International Business and Investment Trust Company” under the name RM Private Trust, also known as ITBG Securities Underwriters Corporation, has its home jurisdiction in the Channel Islands.
The Commission wishes to advise that Reality Millions, RM Private Trust and ITBG Securities Underwriters Corporation are not licensed, registered or in any way authorised to conduct any financial services business in or from within the Bailiwick of Guernsey. Nor are there companies of these names registered within the Bailiwick of Guernsey.
The Commission previously issued a warning about misleading websites containing claims to be able to form “International Business and Investment Trust Companies”. The advice relating to those claims still holds true, namely that the Commission does not recognise such entities as having any form of legal standing.
Anyone dealing with such entities, including Reality Millions, is advised to exercise great caution, particularly before parting with any money.
If you require further guidance please contact the Commission’s Intelligence Team on (+44 1481 712706). Sigma Forex (European Forex Trading) - 7 October 2009 It has been brought to the Commission’s attention that the website www.sigmaforex.com associated to Sigma Forex contains a link to the Commission’s own website and implies that the company complies with Guernsey regulations.
The Commission wishes to advise that Sigma Forex is not licensed, registered or in any way authorised to conduct any financial services business in or from within the Bailiwick of Guernsey.
The Commission advises extreme caution when dealing with Sigma Forex and advises potential customers to always check the registration and regulatory status of a company before entering into any financial arrangement.
If you require further guidance please contact the Commission’s Intelligence Team on +44 1481 712706. Bogus States of Alderney and Guernsey Financial Services Commission document - 8 October 2009 The Guernsey Financial Services Commission has recently had a copy of a letter brought to its attention which contains details of both the States of Alderney and the Commission on the same headed paper. The letter, which is titled “Urgent Notice”, refers to a large sum of money for a named individual and that a security deposit should be paid to a certain bank account.
This is to warn anyone who comes into possession of such a letter that it is completely false and is clearly being used in support of an attempt to commit a fraud. If you receive a document of this description, or if you are unsure about the genuineness of any similar document, please contact the Commission’s Intelligence Team for further guidance on telephone 712706. International Monetary Fund Clearance Commission - 14 October 2009 The Commission has had a document brought to its attention with the letterhead titled “International Monetary Fund Clearance Commission" which claims to have an address in Guernsey. The Guernsey Financial Services Commission wishes to confirm that there is no such entity of this name and the document appears to form part of a fraud scheme. Anyone receiving such a document is advised to cease communicating with those associated with it. Misleading Web Sites - 1 December 2009 Taxhaven Co (www.taxhavenco.com)
Carlton Press (www.offshore-manual.com)
Price Waterman Associates, Inc (www.offshorebible.com)
The Commission has noted that the websites at the above addresses contain inaccurate and misleading information about Sark and financial services products which are available from there.
Amongst other things, the sites offer a "bearer share Sark company with ATM card". However, there is no company register in Sark and the Commission wishes to make it clear that it is not possible to incorporate companies there. Similarly, the "Anonymous Channel Island International Business and Investment Trust Company" is not a product or service that the Commission recognises as an entity having any form of legal standing.
The sites also state that Sark has no financial services regulatory body. This is incorrect as The Financial Services Commission (Bailiwick of Guernsey) Law, 1987, under which the Commission was established, and the laws under which the Commission regulates and supervises different sectors of the finance industry, apply throughout the Bailiwick of Guernsey, including Alderney and Sark.
The Commission therefore advises anyone viewing these sites to exercise great caution.
Coldwell, Seymour & Robinson
Whitherspoon, Seymour & Robinson Corporation
Witherspoon, Seymour & Robinson Inc
The Commission has noted that the above-named entities have several websites which contain misleading information regarding the formation of companies in Sark. Sark does not maintain a separate registry of companies and it is therefore not possible to incorporate a Sark company.
Through their websites the companies also offer various licenses, including bank licenses. However, it has been noted that a warning was issued by the Samoan authorities that Witherspoon, Seymour and Robinson Inc has no authority to sell Samoan companies, banks or any other entity. That warning has also been reproduced by US and Canadian authorities.
The Commission therefore advises anyone viewing these websites, or any other site which claims to be able to form Sark companies, to exercise great caution. Templar Vintners Limited - 22 January 2010 It has been brought to the Commission’s attention that the above-named entity is operating a web site with an address of www.templarvintners.com. The website includes downloads of articles purporting to have appeared in well known publications. One such article includes an advertisement for The Templar Vintners Fine Wine Fund in which it claims to be authorised by the Commission as a Class B Collective Investment Scheme under the Protection of Investors (Bailiwick of Guernsey) Law, 1987.
The purpose of this notice is to warn potential investors that the company is not licensed, authorised or in any way regulated by the Commission for the conduct of any financial services business in or from within the Bailiwick of Guernsey.
Investors are urged to always check the regulatory status of a company before entering into any contract.
If you require further guidance please contact the Commission’s Intelligence Team on (+44 1481 712706). Norman Frederick Silvain and Efaze Limited - 26 May 2011 It has been brought to the Commission’s attention that during 2010 and early 2011, Mr Silvain had been working at financial services businesses in Guernsey. It is believed that he has now left the Island but the Commission wishes to draw licensees’ attention to the fact that Mr Silvain was disqualified from acting as a company director in the UK on 27 August 2008 for a period of 5 years. Licensees are reminded of the Commission’s Instruction of 11 November 2009 regarding the importance of employee screening.
By way of further information, Mr Silvain is known to be associated with the BVI registered company, Efaze Limited, registration number 1065831. Efaze Limited is not licensed, registered or in any way authorised to conduct any financial services business, including company formation, in or from within the Bailiwick of Guernsey. Eon Finance Brokers - 4 September 2012 The Financial Services Commission (Bailiwick of Guernsey) Law, 1987, as amended (the “Financial Services Commission Law”)
The Insurance Managers and Insurance Intermediaries (Bailiwick of Guernsey) Law, 2002 as amended (the “Insurance Managers and Intermediaries Law”)
EON Finance Brokers (“Eon”)
The Guernsey Financial Services Commission (the “Commission”) issues this notice pursuant to its powers under section 2(2)(e) of the Financial Services Commission Law.
The website of Eon (www.eonfinancebrokers.com) has been drawn to the Commission’s attention.
The Commission wishes to make it known that Eon is not licensed as an insurance intermediary under the Insurance Managers and Intermediaries Law.
Jeremy Quick
jquick@gfsc.gg
Director of Insurance
Guernsey Financial Services Commission Woodlock Financial Services (1998) Limited – 26 November 2012
The Banking Supervision (Bailiwick of Guernsey) Law, 1994 (as amended)
The Guernsey Financial Services Commission (the “Commission”) issues this notice pursuant to section 2(2)(e) of the Financial Services Commission Law.
The Commission wishes to inform the public that the 6.75% fixed income product advertised by Woodlock Financial Services (1998) Limited in the 26 November 2012 edition of the Guernsey Press is an investment product rather than a straightforward fixed term deposit with a UK bank. The Commission is concerned that the content of this advertisement may lead some consumers to believe that this is a capital certain deposit with a UK bank when in fact the product being advertised is a structured product; i.e. a more complex financial product.
Whilst Woodlock Financial Services Limited is licensed by the Guernsey Financial Services Commission to (i) carry on business as an insurance intermediary and to (ii) carry out controlled investment business, it is not licensed to take deposits or provide other bank-type services under the Banking Supervision (Bailiwick of Guernsey) Law, 1994 (as amended). Consumers who proceed with this product should be aware that this is an investment product rather than a bank account. For the avoidance of doubt, the product is not covered by Guernsey Banking Deposit Compensation Scheme.
Consumers are strongly advised to check whether a firm or individual is licensed by visiting the Guernsey Financial Services Commission’s website www.gfsc.gg, where lists of firms licensed under the relevant financial services laws are maintained.
Other financial regulators in the British Isles also issue public statements concerning unlicensed financial services business. These are:
Dan Group Limited – 27 November 2012
The Banking Supervision (Bailiwick of Guernsey) Law, 1994 (as amended)
The Guernsey Financial Services Commission (the “Commission”) issues this notice pursuant to section 2(2)(e) of the Financial Services Commission Law.
The Commission wishes to inform the public that Dan Group Limited is not licensed to take deposits or provide other bank-type services under the Banking Supervision (Bailiwick of Guernsey) Law, 1994 (as amended).
Consumers who deal with Dan Group Limited should exercise caution as they will not get the benefit of the Guernsey Banking Deposit Compensation Scheme if Dan Group Limited cannot return funds to its customers.
Consumers are advised to take special care before entering into any commitments in respect of regulated activities (financial services), e.g. banking, investment offers, fiduciary services and insurance services, advertised on the internet. Not all information and facilities available through internet sites will derive from licensed firms.
Consumers are strongly advised to check whether a firm or individual is licensed by visiting the Guernsey Financial Services Commission’s website www.gfsc.gg, where lists of firms licensed under the relevant financial services laws are maintained.
Other financial regulators in the British Isles also issue public statements concerning unlicensed financial services business. These are:
Cloning of websites – 21 December 2012 The Commission has noticed an increase in the incidents of genuine websites being cloned to support fraudsters in committing various types of scams. The offending sites have included clones of legitimate licensees and investment funds.
Licensees are encouraged to regularly check that their websites have not been cloned in such a fashion. If a cloned site is discovered, please contact the Commission’s Intelligence Team on +44 1481 712706 and assistance will be provided. Risk warning regarding fraud against customers in southern Africa- 15 February 2013 The Commission has noticed that in recent years there has been an increasing number of occurrences of fraud being committed against customers of Guernsey licensees where the customer is based in southern Africa. Post, and possibly emails, from licensees are being intercepted and details then being used by fraudsters. It has also been noted that fraudsters have increasingly directed the licensees to make payments to bank accounts in the Far-East and China in particular.
The Commission has liaised with the Guernsey Police and drawn on experience from the industry in order to come up with the following steps, which licensees should consider adopting as part of their risk management practices in order to help prevent frauds occurring against their customers:
· Licensees should not use envelopes which can be easily identified as coming from a financial services business eg. having the licensee’s name printed on them.
· Any callers requesting procedures on how to change details held on file should first be asked if they are a customer. The licensee should then follow its usual security checks, be it call back or security questions, until it is satisfied that the caller is genuine.
· When an instruction is received to change details held on file for a high risk customer or one based in southern Africa, licensees should call back on existing contact details to check whether the request is genuine.
· All transaction requests for customers with an address in southern Africa should have the signature verified against that held on the licensee’s existing records.
· All bank details on redemption instructions should be checked against the existing details held on file. Any discrepancies should be verified by a call back to the customer using the existing details.
· Any requests for payments to accounts based in China, the Far-East or any other non-Appendix C jurisdiction (as listed in the Handbook for Financial Services Businesses on Countering Financial Crime and Terrorist Financing), where the customer has had no previous connection with that part of the world, should be given close attention and verified by a call back to the customer on existing contact details.
· Licensees should notify customers likely to be affected by these measures that transactions and confirmation of changes to details might be subject to slight delays due to enhancements in security.
These steps are intended to be suggestions for consideration by licensees as appropriate to their client base and are not an exhaustive set of anti-fraud measures. Although they have been drawn up with customers based in southern Africa in mind, there is merit in considering the suggestions in respect of all customers.
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