Investors report “unlocking” scams

The Nova Scotia Securities Commission (NSSC) is warning investors about scams involving companies promising to provide investors access to their locked-in retirement accounts.

The regulator said that several schemes claiming to provide investor with access to their locked-in accounts have been reported to regulators.

“Unlocking scams usually result in significant losses from retirement savings in addition to the payment of taxes and other fees,” warned Stephanie Atkinson, acting director of enforcement for the NSSC.

“This can be devastating to investors,” she added.

The NSSC reported that, in one recent case, an investor lost half his retirement savings in a scheme operated by a company offering to provide loans equal to half the value of locked-in accounts.

Along with the losses, the investor faced tax consequences due to withdrawals from the account.

The company involved is called The Finance Company, the NSSC said, noting that the firm is not registered to sell securities in Canada.

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.