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. Call us toll free at 1 866 933-2222.