Canadian securities regulators encourage Canadians to be proactive in preventing investment fraud

St. John's – Canadian securities regulators are recognizing Fraud Prevention Month this March by encouraging investors to take early and proactive steps in protecting themselves from investment fraud.

“Checking registration and asking questions when choosing a financial adviser are the first steps investors can take to avoid falling victim to investment fraud,” says Bill Rice, Chair of the Canadian Securities Administrators (CSA) and Chair and CEO of the Alberta Securities Commission. “The relationship between adviser and investor is more than filling out forms or ticking boxes. There needs to be an ongoing conversation about the investor’s goals and how to meet them with suitable products, while communicating the risks that come with investing.”

Securities regulators stress that being an informed investor is the best defence against investment fraud. The CSA website offers several free educational tools and resources for investors, including how to check the background of an individual or firm, what to ask when choosing a financial adviser, and how to maintain a successful working relationship with an adviser.

The CSA also offers the National Registration Search, a tool that allows investors to easily check if a firm or individual is registered to sell securities or offer investment advice in their jurisdiction. Canadian securities regulators will only register firms and individuals that meet specific qualifications and standards.

The CSA is encouraging investors nationwide to participate in Check Registration Day on March 19, 2014. Here’s how:

• Visit www.aretheyregistered.ca to use the National Registration Search to see if your investment individuals or firms are registered in your jurisdiction.
• Call your local securities commission to verify registration.

If you discover that the person you are dealing with is not registered, call or email your local securities commission immediately.

The CSA, the Council of Securities Regulators of Canada’s provinces and territories, coordinates and harmonizes regulation for the Canadian capital markets. Their mandate is to protect investors from unfair or fraudulent practices through regulation of the securities industry. Part of this protection is educating investors about the risk, responsibilities and rewards of investing.