New Brunswick Securities Commission

Safe Social Networking

Social networking.  It’s all about individuals connecting, communicating and sharing with each other. 

A social network can be online or offline.  It’s a group of individuals (or organizations) who are connected through common interests, hobbies, lifestyles, professional organizations, relationships, faith, or other beliefs.

Having these networks online (think Facebook, Twitter, LinkedIn, eHarmony) has made it faster and easier for us to meet, interact and form relationships and connections with other users anywhere in the world.  Offline, we make these connections by interacting with group members at monthly or weekly meetings.  In the digital world, social networks allow scam artists to establish this trust and credibility much quicker and with people all over the world.

Online, the scammer can have immediate access to the information we post on our profiles, which may contain personal information such as email addresses, phone numbers, home addresses, religious and political views, and more.  The con artist takes advantage of how easily people share background and personal information online and uses this information to make highly-targeted pitches.  The scam can spread rapidly through a social network as the con artist gains access to the friends and colleagues of the initial target.

So how can you be safe and recognize an online investment scam?    Watch for red flags such as:

• Promises of high returns with no risk.  Many online scams promise unreasonably high short-term profits, for example 2% a day, 14% a week or 40% a month. 
• Offshore operations.  A scam headquartered offshore is more difficult for regulators to investigate and shut down.
• E-Currency sites. If you have to open an e-currency account to transfer money, use caution.  These sites may not be regulated, and the con artists can use them to cover up the money trail.
• Recruit your friends.  Most cons will offer bonuses if you recruit your friends into the scheme.
• Professional websites with little to no information.  These days anyone can put up a professional looking website.  Scam sites offer little to no information about the company’s management, location or details about the investment.
• No written information.  Always get a prospectus or other form of written information that details the risks of the investment and what to do to get your money out.

If you notice any of these red flags, STOP.  Evaluate every investment opportunity in the virtual world the same way you would in the real world. Always check to see whether the people selling or promoting the investment are registered with the New Brunswick Securities Commission.  Make sure that you understand what you’re buying, and that you are comfortable with the risks involved.  Ask a neutral outside expert such as an accountant, attorney or registered investment professional, to evaluate the investment.

Take steps to protect yourself from online investment fraud, and practice safe social networking.  Protect your personal information.  Many sites will allow you to choose how much personal information you want to make publicly accessible and how much you want to keep private.  Adjust your privacy and security settings accordingly, and think twice before posting personal information online.

Remember, it is important to report even the suspicion of fraudulent investment activities online or offline.  You can do so by visiting our website or calling us toll free at 1 866 933-2222.  And for resources on how to conduct background checks or what to watch out for to prevent falling victim to investment fraud or making an unsuitable investment, visit our website at www.investinknowingmore.ca.

Listen Now:

 Standard Podcasts: Play Now | Play in Popup | Download | Embeddable Player | Hits (11)

Take Action - Investigate Before You Invest

Did you personally research your most recent investment before parting with your hard earned money? If so, congratulations! You are part of only 43 per cent of New Brunswickers who did, even though most know that they should.

You should ALWAYS know what you’re investing in before you buy. If you don’t you could set yourself up to be a victim of fraud or invest in something that isn’t suitable for your financial situation. Pressure to act quickly or miss out on a great opportunity is a red flag that you could be dealing with a fraudulent investment offer!

Find out as much as you can by doing a background check before investing. Check with the New Brunswick Securities Commission to confirm the registration of the individual and firm offering the investment, and for any past disciplinary action. Use news sources to check out the company’s history. Gather as much information from as many sources as you can, and maintain a healthy level of skepticism when reading marketing material. Make sure you fully understand any important documents that you read about the investment, and that you know all risks associated with it. You may also want to get a second opinion from a trusted professional.

More than half of New Brunswickers (54%) go to a financial adviser for investment information, but only 4 per cent checked to be sure the adviser was registered. A person’s registration is more important than their title because it tells you the type of products or services they are qualified to sell or provide advice on. Registration helps protect investors because the New Brunswick Securities Commission will only register firms and individuals if they are properly qualified and meet a certain standard. Contact the NBSC if you don’t see your adviser’s name on our registered list.

Keep in mind that you’re not the only one who has to do some homework. Anyone selling or advising you about investments will ask questions to ensure they have a clear picture of your financial situation, investment objectives and risk tolerance. This “know your client” information is critical for determining what investments are suitable for you. Make sure the person you’re dealing with asks you these questions.

For more information about researching investment opportunities, background checks and working with your financial adviser, contact the New Brunswick Securities Commission. As the provincial securities regulator, we provide access to free, impartial resources and tools for New Brunswickers. Visit us at www.InvestinKnowingMore.ca or call us toll free at 1 866 933-2222.

- 30 -

ABOUT THE NEW BRUNSWICK SECURITIES COMMISSION The New Brunswick Securities Commission is the Crown Corporation that regulates the securities industry in New Brunswick. It is funded indirectly by investors through industry. Its mandate is to protect investors from unfair, improper or fraudulent practices and foster fair and efficient capital markets, as well as confidence in those markets.

Media Contact: Michelle Robichaud Telephone: 506 643-7045 or 1 866 933-2222 Email: Michelle.Robichaud@nbsc-cvmnb.ca

Listen Now:

 Standard Podcasts: Play Now | Play in Popup | Download | Embeddable Player | Hits (153)

Take Action - Map Your Financial Future Editorial provided by the New Brunswick Securities Commission

If you know your destination, it’ll be easier to get there, right? Well, without a map, you might find yourself going around in circles. Sometimes it’s hard to ask for directions, just like financial planning isn’t something we like to talk about. But, having a clear idea of where you want to go financially can be very useful, and 86 per cent of New Brunswickers agree.

If you are planning your financial future for the first time you are not alone: 70 per cent of New Brunswickers do not have a financial plan. It is important that you take the time to assess your current financial situation. Knowing where you are going financially will help you make better investment decisions and in the long run, will help you achieve your financial goals.

What are you waiting for? Let’s get started. The Investment Planning Worksheet on the New Brunswick Securities Commission’s website is a great resource to help you start planning for your future.

When writing your financial plan, you’ll want to identify the resources you have available to achieve your goals. This might include pension plans, personal property, liabilities, income, and expenses. You’ll also want to write down your financial objectives like buying a home, saving for retirement or paying for a child’s education. And, you should question your comfort level with the value of your investments over time. Although it’s likely you’ll hit a few bumps in the road along the way, it’s important not to lose sight of your long term goals.

You should think very carefully about how much risk you are prepared to take with your money. Remember, there is no such thing as high-return, no-risk investments.

As part of your financial planning process, consider how much time you are willing to spend monitoring and researching your investments; you may want to work with a financial adviser to help you navigate your way. In this case, they will use your financial plan to suggest the right financial products for you to achieve your goals.

For more information about investment and financial planning, and working with your financial advisor, contact the New Brunswick Securities Commission. As the provincial securities regulator, we provide access to free, impartial resources and tools for New Brunswickers. Visit us at www.InvestinKnowingMore.ca or call us toll free at 1 866 933-2222.

- 30 -

ABOUT THE NEW BRUNSWICK SECURITIES COMMISSION The New Brunswick Securities Commission is the Crown Corporation that regulates the securities industry in New Brunswick. It is funded indirectly by investors through industry. Its mandate is to protect investors from unfair, improper or fraudulent practices and foster fair and efficient capital markets, as well as confidence in those markets.

Media Contact: Michelle Robichaud Telephone: 506 643-7045 or 1 866 933-2222 Email: Michelle.Robichaud@nbsc-cvmnb.ca

Listen Now:

 Standard Podcasts: Play Now | Play in Popup | Download | Embeddable Player | Hits (127)

Take Action – Find Answers to Your Investing Questions

What’s on your mind when it comes to investing? Most New Brunswickers these days are thinking about where to go for reliable, unbiased information about investing. No wonder, with all of the market turmoil that has been in the news over the past year.

Have you been worried about market fluctuations?

Are you unsure who to trust to handle your investments?

Questioning how to do a background check on an investment opportunity?

Trying to find information about what to expect from a financial adviser?

Asking yourself: what the heck is a Mutual Fund?

The New Brunswick Securities Commission (NBSC) can help you answer these questions and more!

The NBSC is the Crown Corporation established by the Province of New Brunswick to regulate the securities industry and ensure the efficiency and integrity of capital markets in New Brunswick. We have tools, information and resources available to all New Brunswickers who are looking for free and impartial information about investing.

You can source valuable information on-line at www.InvestinKnowingMore.ca or by contacting us toll free at 1 866 933-2222.

- 30 -

The New Brunswick Securities Commission is the Crown Corporation that regulates the securities industry in New Brunswick. It is funded indirectly by investors through industry. Its mandate is to protect investors from unfair, improper or fraudulent practices and foster fair and efficient capital markets, as well as confidence in those markets.

Listen Now:

 Standard Podcasts: Play Now | Play in Popup | Download | Embeddable Player | Hits (107)

Take Action - Control your financial future

Why do people spend more time researching the purchase of a new car or planning a vacation than investing their life savings? Most know they should pay more attention to their investments but don’t know where to start.

According to a recent survey by the Canadian Securities Administrators, 84 per cent of New Brunswickers agree that it is important to build their personal savings and investments.

So where do you start?

You start by creating a financial plan which includes clear investment goals outlining what you want to accomplish and by when. Next, think about how much risk you’re comfortable with taking. Once you’ve set your goals and decided how much risk you can take, spend some time learning how different types of investments work. Get a sense of what kind of returns you can reasonably expect for a particular level of risk, and what type of costs are associated with different investments. If you need some guidance, you may want to talk to a qualified financial adviser.

More than half of New Brunswickers are worried they don’t have enough savings to meet their financial needs, yet 41 per cent don’t have any savings or investments set aside for the future. Are you one of them?

The New Brunswick Securities Commission has fair and unbiased resources available anytime. Our brochures and on-line tools can help you find answers. Visit www.InvestinKnowingMore.ca for more information or call us toll free at 1 866 933-2222.

- 30 -

The New Brunswick Securities Commission is the Crown Corporation that regulates the securities industry in New Brunswick. It is funded indirectly by investors through industry. Its mandate is to protect investors from unfair, improper or fraudulent practices and foster fair and efficient capital markets, as well as confidence in those markets.

Listen Now:

 Standard Podcasts: Play Now | Play in Popup | Download | Embeddable Player | Hits (103)

Peter Schiff sends a special welcome message to all Fullsail Summit 2009 Delegates.

Fullsail Summit 2009 will be held May 11 - 12 at the Delta Fredericton Hotel in Fredericton, New Brunswick.

Listen Now:

 Standard Podcasts [0:43m]: Play Now | Play in Popup | Download | Embeddable Player | Hits (148)

May 2009 - Interview with Peter Schiff, CEO of Euro Pacific Capital.

Mr. Schiff will be the keynote speaker at the New Brunswick Securities Commission's Fullsail Summit 2009 in Fredericton New Brunswick.

Listen Now:

 Standard Podcasts [7:34m]: Play Now | Play in Popup | Download | Embeddable Player | Hits (162)