FSA alert over carbon trading scams
The Financial Services Authority has issued its first warning about carbon credit trading scams.
Photo: PA
6:45AM BST 03 Aug 2011
The City watchdog is warning retail investors about bogus firms promoting such schemes.
The warning follows an upsurge in investors filing complaints to the FSA about aggressive sales practices adopted by brokers claiming to be selling carbon credits.
The brokers claim trading in such credits is a growing market, allowing investors substantial returns.
In a statement, the regulator warned: “While not all carbon credit trading schemes are scams, it is often not made clear to investors that trading on over-the-counter markets requires experience and skill.
“You may lose money on your investment by not getting a competitive rate when trading a small volume of carbon credits or not being able to sell your credits at all.”