$ 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 the recently released CSA Investor Index 2009, 41% of Nova Scotians reported that they were approached with a possibly fraudulent investment. One out of four said they were approached five or more times with a potential investment fraud.
With fraud attempts so prevalent, how can you work to protect yourself? To start, you want to be familiar with the Red Flags of Fraud – five signs that an investment opportunity might be fraudulent or inappropriate.
To help investors become more familiar with the signs of fraud, and more comfortable in their investment decisions, my colleagues at the Alberta and BC securities commissions have combined forces to provide an online tool to help you learn how to protect your money.
The interactive tool entitled Investment Scams: How to Protect Your Money, focuses on some common methods that fraudsters use to approach potential victims – via friend and family or ‘affinity’, the Internet, seminars and advertisements. The online resource engages users with an opening quiz and testimonials to raise awareness of the ways fraudsters attract their victims. The testimonials are based on real cases depicting how people are drawn into scams.
The comprehensive tool provides information about how to recognize, research and prevent fraud. Offered as modules that can be easily accessed and shared, the resource provides investors with checklists and tips to help them evaluate and research investment opportunities for risks and potential fraud. As well, there are features within the resource to help investors directly email questions to a person offering them an investment and submit a complaint to the securities regulators.
To try it out for yourself, visit the site of either the Alberta or British Columbia Securities Commissions. Some of the information presented will be specific to those provinces. To see how the same might apply in Nova Scotia, contact me, or pose a question in the comments below.
Also available, from the Alberta Securities Commission, is a similar tool Who’s Taking Care of Your Money? This online course guides you through the process of choosing and working with a financial adviser. For both novices and experienced investors, it includes information on managing your relationship with your adviser, and how to file a complaint if needed.
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