$ NEED MONEY $
Do you have a locked in pension plan
from an ex-employer (LIRA) or (LIF)?
3 easy ways to help.
Call 1-866-XXX-XXXX
A suspicious advertisement similar to the one above has been circulating Atlantic Canada regarding locked-in Registered Retirement Savings Plans (RRSP) such as Locked-In Retirement Accounts (LIRA) and Life Income Funds (LIF).
The ad offers to help persons in need of money to access funds from locked-in pension plans with ex-employers. To do so, investors must pay fees and qualify for loans. Unfortunately, rather than providing funds as promised, the persons behind the ad could be taking investors’ money and disappearing, leaving previously cash strapped persons in an even worse financial situation.
The unlocking of RRSP and pension funds is strictly regulated provincially under the Pension Benefits Act and federally by the Canada Revenue Agency. Before responding to advertisements offering to assist with obtaining funds from locked-in RRSPs, investors are cautioned to first seek professional advice, perhaps from a lawyer or accountant, or the Canada Revenue Agency in order to ensure the offer is legitimate.
Also, if you have questions about an investment that seems fishy, you can also contact the Nova Scotia Securities Commission.
March is Fraud Prevention Month – remember to always check before you invest.
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In its effort to protect Nova Scotian investors and capital markets, the Nova Scotia Securities Commission investigated 67 complaints and issued $632,500 in administrative penalties in 2009.
The commission concluded nine cases against 10 defendants that included one disclosure violation, six cases involving registrant misconduct, and two cases of conduct not in the public interest.
These figures and more were released today as a part of the Canadian Securities Administrators (CSA) 2009 Enforcement Report. (The Nova Scotia Securities Commission is a member of the CSA.)
The report shows actions by Canadian securities regulators resulted in more than $153 million in fines and administrative penalties against individuals and companies in 2009, compared with $12.5 million in 2008. Because of the inter-provincial nature of capital markets, proceedings and prosecutions in other provinces have an impact on Nova Scotia markets and investors.
What do these numbers mean to Nova Scotian investors? We hope they tell you that there is an organization actively working to provide protection to investors, and working to ensure that the capital markets in this province operate fairly and efficiently.
A recent national survey showed that 41 per cent of Nova Scotians said they have been approached with some form of investment fraud, but less than a third actually reported it. When asked who they would report the incident to, 63 per cent indicated the RCMP and 37 per cent said local police. Only 17 per cent said they would go to a financial regulator.
Many concerns about investing and advisor conduct are not criminal issues, and so not in the jurisdiction of the police. To report a complaint to the securities commission, go to our enforcement web page, or call 902-424-4558.
The full report can be found on the Nova Scotia Securities Commission’s website, under “What’s New - Enforcement.”
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