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Benson & Raymond Acquisitions Inc / Drexel Asset Management Limited

25 Nov 04

The Financial Services Commission warns the public against the activities of Drexel Asset Management (Drexel), which has been approaching investors in Gibraltar through unsolicited or 'cold calls' to invest money in foreign securities without the necessary authorisation. It would appear that Drexel personnel are calling from Japan or Malaysia.

The FSC hereby informs the public that Drexel does not have the appropriate authorisation to provide any type of financial services activities in or from within Gibraltar. Regulators from Japan, Malta, Singapore, Belgium, Hong Kong and Luxembourg have already issued public warnings concerning Drexel.

The FSC cautions members of the public against investing in shares or other securities through companies that solicit for business through unsolicited or 'cold calls'.

The FSC would like to remind investors not to enter into any financial services transaction, unless they have ascertained that the entity with whom the transaction is being made is authorised to provide such services by the FSC or other reputable financial services regulator.

A list of entities licensed by the FSC is available from the Regulated Entities menu.

The FSC's warning follows several complaints from local investors who have bought shares in foreign securities from Drexel and have been unable to redeem these or obtain a refund.

An entity calling itself Benson & Raymond Acquisitions Inc. (Benson) has recently contacted such investors. Benson offers to buy back the investors' shares, albeit asking for an advanced fee.

Benson, which appears to be based in San Francisco, California, is not authorised to provide any financial services in or from Gibraltar. Under the circumstances, the Commission would strongly urge persons considering dealing with this entity to exercise the greatest possible caution before proceeding. Any persons who are already involved in any dealings with the above entity and have concerns should contact the Manager, Enforcement on +350 200 40283 or by e-mail to [email protected].