A cold call is one to a stranger who does not anticipate a call and has not expressed an interest in wine investment. Such calls are not acceptable for the purposes of investment and are a high-pressure sales technique.
Calls can be made to non-clients who have expressed an interest in wine investment and who are aware that having expressed such an interest they can reasonably expect a follow up call. Increasingly this interest is likely to be expressed through a website. Companies should keep records of these leads to show that they were properly established leads and be able to produce them if challenged. If adopted by the WIA, these records should form part of the annual monitoring process.
When a client places an order over the phone they must be made aware of their right to cancel as in line with the Distance Selling Regulations’ legislation.
This draft of acceptable conditions will have to take cognisance of any proposals and changes that are made by the new The Financial Conduct Authority (FCA), which has now taken over from the Financial Services Authority.
Hugo Rose MW, chairman of the WIA, has called on the fine wine trade to support self-regulation and the WIA here in Harpers. A prerequisite of getting such support should be ruling out cold calls – ie those to strangers who have no reason to expect a call about wine wine investment.