Your power as an investor starts with information Registration helps investors like you know who to trust. Reliable investment advice is hard to come by. How do you know whom to turn to and whom to believe? How do you know how to steer clear of investment forex and taxes canada and fraud?
Securities industry professionals are required to register with provincial and territorial securities regulators where they do business. Their registration and good standing help reassure investors that the firms and individuals they deal with are properly qualified and that there are no disciplinary actions against them. This site is designed to give investors like you insight into how regulation and registration help you to avoid investment scams and fraud and to help you choose an investment professional you can trust. In less than a minute, you can check the status of a financial adviser or firm. We’re all susceptible to investment opportunities that can seem too good to pass up. Professional scam artists go where the money is, which means that if you have money to invest, you’re vulnerable to fraud. And it isn’t just the rich or elderly or financially naïve who need to be vigilant.
Protecting yourself starts with knowing that your adviser is a registered professional with a track record of honest, dependable service. At investment seminars Charismatic, high-energy presenters use high-pressure sales tactics to get you to invest in risky products on the spot. Spam emails or unsolicited phone calls can target a broad cross-section of people and promote risky investments for which there is little information available. New investment scams appear every day. However, most are a variation on one of these common scams. X Exempt securities scam Exempt securities, on their own, are not scams.
You may be told that the person investing your money has a great track record and can promise you a high return. What usually happens is that your money is not invested in anything—the scam artist simply steals it. X Offshore investment In this type of scam, the fraudster will promise you a high return on an investment in an offshore market. They will often tell you the investment is a great way to avoid taxes. What you may not know is that once your money is sent to another country and is under someone else’s control, you may not be able to get it back. X Pension scam If someone tells you there is a way to take the money out of your locked-in retirement account without paying tax, it’s likely a scam. In most cases, you can’t take money out until you reach a certain age.
There are also often limits to how much money you can take out each year and you will pay tax on the money you withdraw. With this scam, you are offered an incredible deal on a low-priced stock. What you don’t know is that the person or company contacting you owns a large amount of this stock. As more and more investors buy shares, the value skyrockets. Once the price hits a peak, the scam artist sells their shares and the value of the stock plummets. Sensing an opportunity, they recruit friends and family as new investors.
Most investment frauds share one of these common telltale warning signs. A better approach is to stick with the tried and true strategies that have long served smart investors well. The person you’re dealing with isn’t registered. People selling investments and giving investment advice in Canada must be registered unless they have a specific exemption.
It takes only a few seconds on this site to see if your information source is registered and has a record free from enforcement actions that might make you think twice about trusting their advice. Know who to call for help. Securities regulators oversee Canada’s capital markets and strive to protect investors from unfair, improper and fraudulent practices while fostering a fair and efficient marketplace. You can always contact your local securities regulator to check whether a person and the firm they work for are registered. You can also find out whether they have been the subject of any disciplinary actions. You’re promised a high rate of return with a low-risk investment.