Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what representations he has received on allegations of fraud connected to overseas investments; and what steps he is taking to safeguard the interests of UK investors involved in investment scams (a) overseas and (b) in unregulated areas.

The Government takes matters of fraud extremely seriously. We continue to work closely with industry to close down the vulnerabilities that fraudsters exploit and ensure members of the public have the information they need to spot a scam and stand up to fraudsters.

The FCA hold a public record that shows details of firms, individuals and other bodies that are, or have been, regulated by the Prudential Regulation Authority (PRA) and/or the FCA. Consumers who are considering an investment opportunity are encouraged to use the register to check the regulatory status of the firm in question ahead of transferring any funds. The register can be found here https://register.fca.org.uk/.

Individuals who invest in unregulated products should be aware that they are unlikely to be eligible for FSCS compensation (unless a regulated activity (i.e. financial advice) has been undertaken). Whether an activity is regulated is set out in legislation, and is rightly a matter for government and Parliament. The costs and benefits of bringing activities into the regulatory perimeter can be finely balanced which is why Government is committed to regulating only where there is a clear case for doing so.

Where a member of the public suspects that they have been a victim of a scam they should report the case to Action Fraud, the national reporting point for fraud and cyber crime.