Five top tips to avoid false RRSP promises You’ve likely noticed an abundance of RRSP (Registered Retirement Savings Plans) advertising aimed at people just like you who may be planning to top up their RRSP contributions before this year’s March 1 deadline. Some companies use attractive RRSP claims to pull you into an investment that may be unsuitable for you.
While there are ads promoting investments that are legitimate, there are companies that may make misleading claims in their online, radio, TV or newspaper advertising or through information passed along via family or friends (e.g. from a seminar or through the mail).
Before you jump in, follow these five top tips to avoid getting burned by false RRSP promises:
- Do more research. While some tax-free claims may seem appealing, what they promise may not be true. Contact the Canada Revenue Agency,
www.cra-arc.gc.ca, or consult with a tax specialist to learn more. - Get it in writing and check first. Ask more questions. Once you sign and agree to the terms and conditions of an investment, it can be difficult to get your money back from the company should the investment backfire.
- Ensure the person offering you the investment is registered. Check their registration status online. A person or company must be registered to advise in and trade securities.*
- Do a background check. Check out the company or individual offering you the investment. For example, are they the subject of a current or past enforcement proceeding?
- Don’t feel rushed. Make sure any investment you sign up for is suitable for you, is at a risk level with which you are comfortable, and aligns with your financial goals.
If you believe you or someone you know may be a victim of misleading investment advertising, contact our public inquiries office (toll free 1-877-355-4488 or inquiries@asc.ca) to discuss a course of action.
*Unless there is an available exemption. To find out more, contact the ASC. Comment on this blog... | About this Blog We’ve created this blog to present you with answers to some of the more popular questions we receive from investors. We'll have different subject matter experts blogging about what they know best and we'll update it as new blogs arise. We hope you'll find it interesting and helpful. Today's Blogger
Hi, I’m Lorinda Brinton, senior advisor for Investor Education at the ASC. During the last five and a half years I’ve been working to get you the information you need when making your investing decisions. We have many resources throughout the site to help you be more informed and better protect your money. Check them out – I’m sure you’ll discover some tools or information that will be useful. Here are some links I think you’ll find helpful: Ask your question If you have a question you would like to see answered on this page, email them to questions@asc.ca. We may not use every question we receive but will concentrate on areas from which we receive the most inquiries. If you have a question related directly to your own situation, please contact ASC inquiries using our toll free number (1-877-355-4488) or email inquiries@asc.ca. If you have a complaint, email complaints@asc.ca or call 403-355-3888.
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