Foreign based companies listing in the UK

[bullboy8]

Does anyone think its more risky to invest in foreign based companies listed here in the UK? It seems that its impossible for their NOMAD (assuming they are based in UK) and the FSA to regulate them as they can't just visit their offices. more chance of fraud.

Has anyone been concerned of this?

Thanks

 

[bullboy8]

anyone?

 

[grantx]

Bullboy,

The FSA has no jurisdiction over any company in the UK not involved in investment business. It has part/total jurisdiction over every company - British and foreign - involved in investment business (except own account trading?)in the UK.

Grant.

 

[bullboy8]

You are right to say FSA don't have jurisdiction, but how about the NOMAD? one of their duties is to check whether the company is suitable and most importantly, check the directors background and CV. Surely, its a lot harder for the NOMAD to do and they'll probably, just tick the box to make lives easier for themselves.

 

[Bagehot]

You are right to say FSA don't have jurisdiction, but how about the NOMAD? one of their duties is to check whether the company is suitable and most importantly, check the directors background and CV. Surely, its a lot harder for the NOMAD to do and they'll probably, just tick the box to make lives easier for themselves.

Nomad only applies to AIM, BB. But in any case the corporate advisors could get a serious slap on the wrist (and worse) if they are shown to have been negligent in their due diligence. In practice it's as easy to get on a plane to Moscow as it is a train to Huddersfield... Actually, you're more likely to get the lawyers and bankers out for a bit of R&R in Moscow than going to visit a metal-bashing client oop north

And in terms of the risks: yes, but that will be discounted in the price - the investor has to assess risk vs. rewards. Caveat emptor and all that.

 

[grantx]

Bagehot,

And bringing a crock of stih to the market does not constitute negligence.

I’m afraid your somewhat a little out of date re the north. Huddersfield is attracting more and more tax exiles who find the climate of Monaco, San Remo, etc oppressive. Moreover, the summer climate is similar to the South of France, and the ski resort has its own airport catering for the super-rich. And Liverpool, being equal to Venice, is the capital of culture.

Grant.

 

[bullboy8]

thanks all, you've given me to confidenc now to make that next step