New RRSP and pension scam in Atlantic Canada

by Natalie MacLellan on March 9, 2010

in Fraud Prevention, In the News

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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