In recent years, many companies have become aware that their shareholders have received unsolicited phone calls or correspondence concerning investment matters. These are typically from overseas-based ‘brokers’, working for firms that have become known as ‘boiler rooms’, who target UK shareholders, offering to sell them what often turn out to be worthless or high risk shares in US or UK investments.

These ‘brokers’ can be very persistent and extremely persuasive. A 2006 survey by the Financial Services Authority (FSA) reported that the average amount lost by investors to these people was around £20,000.

It is not just novice investors who have been duped in this way. Many victims have been successfully investing for several years. Shareholders are advised to be very wary of any unsolicited advice, offers to buy shares at a discount or offers of free company reports. If you receive any unsolicited investment advice, we recommend that you:

• make sure you get the name of the person and organisation
• check that the firm is properly authorised before getting involved by visiting www.fsa.gov.uk/register/
• report the matter to the FSA either by calling 0300 500 5000 or using the FSA’s online form

The FSA publishes a list of these unauthorised firms on its website.  If one of these firms contacts you by phone, the best course of action is to hang up. If you deal with an unauthorised firm, you will not be eligible to receive payment under the Financial Services Compensation Scheme.

Details of any share dealing facilities that GSK endorses will be included in company mailings.