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Lawyer in shale gas warning

Gareth Fatchett, director of Regulatory Legal Solicitors, was sent a four-page investment agreement by a paraplanner at an advisory firm.

The agreement was sent by UK-based Shale Gas Investments to the adviser’s client.

The document, seen by Financial Adviser, states that the client “wishes to make a capital contribution ... in exchange for a guaranteed return rate of 18 per cent”.

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It states that the client will invest £10,000 and be a shareholder for a year.

The rate will change after the initial 12-month contract. On the document, SGI said it cannot disclose information about its fracking sites due to “media attention and activists’ actions”.

Mr Fatchett called the return on offer “staggering for a non-regulated product”.

The company, which was incorporated in June 2013, was formerly known as DFH Trading and filed a name change with Companies House on 19 July.

Neither DFH Trading nor Shale Gas Investments appear on the FCA register. An FCA spokesman confirmed that is does not regulate SGI.

According to the certificate of incorporation lodged with Companies House, the company was registered by 27-year-old, David Holloway of Eltham.

He is described on the documents as a shareholder.

SGI did not respond to repeated requests for comment. Mr Holloway was not available for comment.