Canadian securities regulators are encouraging investors to take early and proactive steps in protecting themselves from investment fraud.
“Checking registration and asking questions when choosing a financial adviser are the first steps investors can take to avoid falling victim to investment fraud,” says Bill Rice, chair of CSA and Chair and CEO of ASC.
He adds, “The relationship between adviser and investor is more than filling out forms or ticking boxes. There needs to be an ongoing conversation about the investor’s goals and how to meet them with suitable products, while communicating the risks that come with investing.”
Securities regulators stress that being an informed investor is the best defence against investment fraud. CSA’s website offers several free educational tools and resources for investors, including how to check the background of an individual or firm, what to ask when choosing an adviser, and how to maintain a successful working relationship with an adviser.
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CSA also offers the National Registration Search, a tool that allows investors to check if a firm or individual is registered to sell securities or offer investment advice in their jurisdictions. Canadian securities regulators say they’ll only register firms and individuals that meet specific qualifications and standards.