March 1, 2010
SAINT JOHN (CNB) - Investors are being reminded by the New Brunswick Securities Commission (NBSC) to take action to ensure they do not become victims of investment fraud. The NBSC issued this reminder today at the start of Fraud Prevention Month.
Recent research from the Canadian Securities Administrators (CSA) found that New Brunswickers, as with most Canadians, believe they are knowledgeable about investing, yet many of them are not putting that knowledge into practice.
According to the CSA Investor Index released in September 2009, 85 per cent of New Brunswickers agreed that they should not make an investment without first doing independent research. Only 43 per cent, however, researched their last investment before they bought it.
Investment fraud is a real and serious concern in New Brunswick. Nearly 40 per cent of New Brunswickers have been approached with a possible fraudulent investment.
Telephone solicitations are the most common way for New Brunswickers to be approached, with 40 per cent of attempts coming from a stranger calling over the telephone (compared to 28 per cent nationally). E-mail and personal contact are other common approaches.
"Investors need to be aware that not every investment opportunity is right for them," said Rick Hancox, NBSC executive director. "Some opportunities may not be appropriate for their situation or their risk tolerance. If it sounds too good to be true, it may be a scam."
The NBSC has outlined some of the ways New Brunswickers may take action against investment fraud:
"We encourage New Brunswickers to take action," said Hancox. "Meet with an adviser to determine your risk tolerance, and to review it at least once a year. Knowing your risk tolerance will help when deciding if an investment fits your goals and objectives."
"If you suspect or know you have been approached with a fraudulent investment opportunity, take action and immediately call the NBSC to report the incident," said Hancox. "This enables us to investigate and take action against fraud."
As an independent provincial Crown corporation, the NBSC oversees the capital markets in New Brunswick and regulates those that sell or manage securities. The NBSC is funded by regulatory fees paid by those operating in the investment industry including public companies, mutual funds and more than 7,000 registered individuals and firms.
MEDIA CONTACT: Michelle Robichaud, communications, New Brunswick Securities Commission, 506-643-7045 or 1-866-933-2222, email@example.com.