When a broker has a personal interest
Posted: August 10th, 2018, 1:56 pm
Dear Fools,
Apologies if this is the wrong board to post this. It seems the best fit I could find.
I have been approached by an FCA regulated stockbroker that is trying to persuade me to buy shares in an unlisted private company. As part of my due diligence, I discovered that the individual broker who is doing the selling has (or at least had as of the company's most recent Confirmation Statement filed at Companies House) a personal shareholding in the company worth - at the price the placing shares are being sold for - in excess of £50k.
At no stage was any mention of this made to me by the broker concerned. Surely there must be a huge conflict of interest here. Can anyone confirm whether any rules were broken here please?
Many thanks,
Gostevie
Apologies if this is the wrong board to post this. It seems the best fit I could find.
I have been approached by an FCA regulated stockbroker that is trying to persuade me to buy shares in an unlisted private company. As part of my due diligence, I discovered that the individual broker who is doing the selling has (or at least had as of the company's most recent Confirmation Statement filed at Companies House) a personal shareholding in the company worth - at the price the placing shares are being sold for - in excess of £50k.
At no stage was any mention of this made to me by the broker concerned. Surely there must be a huge conflict of interest here. Can anyone confirm whether any rules were broken here please?
Many thanks,
Gostevie