June 2009
Dear Shareholder
Boiler Room Fraud
It has come to our attention that a small number of shareholders have been receiving unsolicited telephone calls, which purport to come from Spectris, concerning their investment in Spectris plc.
I am writing to advise you that no employee of Spectris will ever contact our shareholders in this manner and to provide reassurance that we are taking the steps we can to minimise this intrusion.
Spectris is obliged by law to make its share register publicly available on request. As a consequence, shareholder address information can be used to obtain telephone numbers and shareholders may also receive unsolicited mail.
Provisions under the 2006 Companies Act now enable Spectris to challenge making its share register available when the reason advanced for the request is not acceptable to Spectris and we intend, as necessary, to take advantage of these provisions.
The practice of Boiler Room fraud has been highlighted by the Financial Services Authority and the Institute of Chartered Secretaries and Administrators, and their warning notice to shareholders is reproduced below.
Yours sincerely
Roger Stephens
Secretary
WARNING TO SHAREHOLDERS - BOILER ROOM SCAMS
Over the last year, 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’ 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 operations are commonly known as ‘boiler rooms’. These ‘brokers’ can be very persistent and extremely persuasive, and a 2006 survey by the Financial Services Authority (FSA) has reported that the average amount lost by investors is around £20,000.
It is not just the novice investor that has been duped in this way; many of the victims had 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:
• Make sure you get the correct name of the person and organisation
• Check that they are properly authorised by the FSA before getting involved by visiting http://www.fsa.gov.uk/Pages/register/
• Report the matter to the FSA either by calling 0845 606 1234 or visiting www.moneymadeclear.fsa.gov.uk
• If the calls persist, hang up.
If you deal with an unauthorised firm, you will not be eligible to receive payment under the Financial Services Compensation Scheme. The FSA can be contacted by completing an online form at www.fsa.gov.uk/pages/doing/regulated/law/alerts/overseas.shtml
Details of any share dealing facilities that the company endorses will be included in company mailings.
More detailed information on this or similar activity can be found on the FSA website www.moneymadeclear.fsa.gov.uk
