Through using the names of well known wealth mangers, fraudsters are scamming investors, the Financial Conduct Association (FCA) told Private Banker International today.
Nearly ten fake firms have been reported in December alone, the most recent being Amber Asset Management, a clone firm based in London with no link to the authorised Amber Firm Management Ltd. Companies also affected by this new trend include JP Morgan, deVere Group and G&E Wealth Management.
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The FCA has warned investors over firms using details from authorised firms to gain the confidence of vulnerable new investors. Other tactics include aggressive sales manoeuvres, references to legitimate company websites and fraudulently using company and employee details.
According to the FCA, October was the worst month of 2013 for these moves with the number of cloned companies reaching 33.
It is not only the UK being affected by fraud in the wealth management industry. As exclusively reported by PBI, Singapore is also going through a time of turmoil in terms of a heavy number of fraud cases.
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By GlobalData
