Take Control of Your Financial Future

1
Take Control of Your Financial Future

• Recognizing, Reporting and Avoiding Fraud

2
What is the New Brunswick Securities Commission?

• Crown Corporation
• Established in 2004
• Double role

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Investment adviser relationship

• Know who youre dealing with

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Registration

• Check your advisers registration
• The NBSC can tell you if a firm or individual is
  registered in New Brunswick

5
What an adviser cant do for you

• Your adviser will not be able to
• Predict the performance of the markets with
  certainty
• Recommend investments that are always profitable
• Act on vague or general instructions to buy or
  sell investments
• Meet unrealistic goals or expectations of profit

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Do I have a complaint?

• You may have a complaint if your financial
  adviser 
• is not registered to sell the investments being
  recommended
• takes money out of your account, or buys or sells
  securities with your money, without first getting
  your permission (unless one of the exemptions
  previously discussed applies)
• switches you from one mutual fund to another when
  there is no legitimate reason

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Do I have a complaint?

• does not take reasonable care to see that your
  investment request is executed at the best
  possible price, given the market conditions at
  the time or
• recommends you buy or sell a security that is
  unsuitable based on the information gathered from
  you in the Know Your Client form (KYC).

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What the NBSC Can Do

• answer general questions about investment
  products and services,
• tell you if a firm or representative is
  registered in New Brunswick,
• tell you if an individual or firm has ever been
  disciplined by the NBSC,
• suggest options for pursuing your complaint and
  tell you which organization may be most helpful
• enforce compliance with securities legislation,
  and
• act against market misconduct, including removing
  from the market those who do not comply with the
  law or who cheat investors.

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What the NBSC Cant Do

• undo a transaction,
• give advice on an investment,
• give legal advice, or
• comment on an ongoing investigation.

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Avoiding reporting fraud

• Invest in Knowing More

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Avoid, Recognize, Report

• Avoiding a scam before it happens
• Recognizing a scam
• Types of scams
• How you might be approached
• See Protecting Your Money from Frauds and
  Scams in your kit.

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Avoid Do a Background Check

• Step 1- Check your advisers registration
• Step 2 - Check for disciplinary action
• Step 3 - Check the companys history
• Step 4 - Check the news
• Step 5 - Check other search tools

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Recognize - Red Flags of Fraud

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14
Recognize Common Scams

• Boiler rooms (See Boiler Room Scams Could you
  be vulnerable? in your kit)
• Internet Fraud (See Investment Fraud and the
  Internet in your kit)
• Affinity Fraud

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Recognize Common Scams

• Double Dip
• Ponzi
• Pyramid

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Why a Ponzi Scam Fails
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Why a Pyramid Scheme Fails
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Reporting Fraud

• www.nbsc-cvmnb.ca
• 1-866-933-2222
• See Complaints Resource Kit in your kit

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Remember

• Do a background check
• Hang up on unsolicited phone calls
• Never respond to spam
• Use common sense
• Contact us
• 1 866 933-2222
• www.nbsc-cvmnb.ca
• information_at_nbsc-cvmnb.ca
• _at_NBSecuritiesCom