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Enforce or change the ruling under Section 21 of the Financial Services & Markets Act to ensure that Bloggers, share tipsters and 'financial journalists' such as found on ShareProphets.com have to be fully registered on the Financial Services Register.

This petition had 812 supporters


 

ShareProphets are an unregulated group of financial journalists and authors who offer share tips.

They are apparently exempt from the restriction on financial promotion under section 21 of the Financial Services & Markets Act 2000 (FSMA) even though advising on investments is regarded as an activity that needs to be regulated.

A financial promotion is a communication of an invitation or inducement to engage in investment activity, such as entering into an agreement to buy or sell shares.

In the FCA's view, “the essential elements of an invitation or an inducement under section 21 are that it must both have the purpose or intent of leading a person to engage in investment activity and be promotional in nature. “

“So it must seek, on its face, to persuade or incite the recipient to engage in investment activity. The objective test may be summarised as follows. Would a reasonable observer, taking account of all the circumstances at the time the communication was made:

(1) consider that the communicator intended the communication to persuade or incite the recipient to engage in investment activity or that that was its purpose; and

(2) regard the communication as seeking to persuade or incite the recipient to engage in investment activity."

I strongly regard the share tips advice on ShareProphets website as seeking to persuade or incite the recipient to engage in investment activity.

For example, a Quindell PLC investor reading the following statement would be persuaded or incited to sell based on the following ShareProphets editorial

e.g. Articles byBy "Tom Winnifrith, The Sheriff of AIM on http://www.shareprophets.com

Wednesday 5 November 2014

“My stance remains sell with a target price of 0p.”

chief fraudster Robert Terry and sidekicks Laurence Moorse and Steve Scott “Rob Terry invests not a cent to buy a million Quindell shares – what bollocks

http://www.shareprophets.com/views/8781/rob-terry-invests-not-a-cent-to-buy-a-million-quindell-shares-what-bollocks

 

 or Dec 6th 2014

"In the wake of the exit of Rob Terry, the Quenron (QPP)..." Dec 6th

All articles by Tom Winnifrith are equally negative about Quindell and in my opinion obviously intend to persuade either new investors not to buy shares in this company or for existing shareholders to sell.

 Therefore I believe that this should be advice that only regulated share tips advisers should be allowed to give.

In my opinion if ShareProphets wish to continue to give such strong recommendations on how to invest then they should be forced to be registered on the Financial Services Register to make the ShareProphets authors accountable for their advice.

I also believe that if enough people add their signatures to this petition it will put pressure on the FCA to increase much needed regulation in the jungle of financial advice and promotions in order to create a much fairer and safer system for the public when investing in financial products.

 



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