Investor Watch: ASC Suggests Caution for Albertans Investing Income Tax Refunds CALGARY - May 9, 2008 - With many Albertans waiting to receive their 2007 Income Tax refunds, the Alberta Securities Commission (ASC) is urging Albertans to Check First before they make a decision about where to invest their refunds.
During the month after the tax filing deadline, many companies start to promote investment opportunities, encouraging investors to use income tax refunds to “start early this year”. The ASC reminds you to research any opportunity before making your financial decision. To help you Check First, the ASC offers the following tips to help you ask the right questions before you invest:
Be wary of unsolicited investments.
Investment opportunities made over the phone, by email or through a friend, co-worker or family member may not be suitable for you. Consider that the people making their pitches may not know your financial goals or knowledge or level of risk tolerance. Ask for a written description of the investment you are being offered. Review all documents carefully and don’t be afraid to have a professional adviser evaluate the offer with you to determine if the opportunity is right for you.
Take time to review your investment goals.
Only 42 per cent of Albertans have a plan with clear investment goals. Without a plan, you may be more easily swayed into an opportunity that is unsuitable for you. If you are approached with an opportunity that sounds too good to pass up, remember to Check First. This will allow time to confirm the suitability of the offer, determine the level of risk you are willing to take and decide whether the investment opportunity matches your investment objectives.
Conduct a background check.
Ask your salesperson if he or she is registered with the ASC or selling the investment opportunity under an exemption of the Alberta Securities Act. You can contact the ASC at 1-877-355-4488 to check the information and determine if the seller is registered or has a history of disciplinary action with the ASC.
Be aware of the latest investment scams.
Learn about common scams and recent fraud bulletins to be better prepared when you are considering an investment opportunity. Visit the ASC website to test your ability to spot a scam and learn more about the Red Flags of investing. Keep an eye on our Investor Watch section and sign up to receive notices on the latest alerts and investor warnings.
If you suspect a scam, report it.
Investment fraud can happen to anyone. A recent Canadian Securities Administrators survey indicated almost one in 20 Canadians has been a victim of investment fraud. If you think you have been a victim of fraud or may be involved in an investment scam, visit www.albertasecurities.com to learn how to make an inquiry or file a complaint.
For more tips on how to Check First, visit www.albertasecurities.com.
The ASC is the regulatory agency responsible for administering the province's securities laws. It is entrusted to foster a fair and efficient capital market in Alberta and to protect investors. As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of Canada's capital markets.
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For further information please contact:
For Media Inquiries: Mark Dickey
Senior Communications Advisor
403.297.4481
For Investor Inquiries: ASC Public Inquiries
Toll Free 1.877.355.4488