The Financial Conduct Authority (FCA) has warned that impostors are soliciting UK consumers using the name of Flagstone Investment Management Limited, an FCA authorised firm with Firm Reference Number 676754. According to the regulator, the clone is also using a previous registered name of the genuine business.
The FCA said the firm behind the approaches is not authorised by the regulator but has been contacting people while pretending to be an authorised firm — an arrangement the FCA describes as a clone firm. The clone contacts victims from email addresses that are not the genuine firm's.
The regulator noted that fraudsters copy the details of authorised firms to convince people that their operation is genuine. Scammers may give out other false details, including email addresses, telephone numbers, postal addresses and Firm Reference Numbers, may mix those details with the genuine details of authorised firms, and may change their contact details over time.
Genuine firm has no connection to the clone
Flagstone Investment Management Limited, registered at 1st Floor, 26-27 Oxendon Street, Clareville House, London, SW1Y 4EL, United Kingdom, is the authorised firm the fraudsters are claiming to work for and has no connection with the clone. The genuine firm operates flagstoneim.com and is unaffected by the warning.
No Ombudsman or FSCS cover for clone customers
Consumers who deal with the clone will not have access to the Financial Ombudsman Service if they want to complain, and will not be protected by the Financial Services Compensation Scheme (FSCS) if things go wrong. The FCA said this means it is unlikely money would be returned if the firm goes out of business.
Anyone who sent money to a fraudster on or after 7 October 2024 may be covered by protections introduced by the Payment Systems Regulator (PSR).
The FCA advised consumers to deal only with firms it authorises and to use the FCA Firm Checker to confirm a firm is authorised and holds permission for the services being offered. Where a financial business makes unexpected contact, the regulator said people should reply using the contact details listed on the Firm Checker. Suspected approaches from unauthorised or clone firms can be reported to the FCA on 0800 111 6768 or through its contact form, and its Warning List records other unauthorised and clone firms the regulator is aware of.
