Unregistered products and unlicensed salespeople top this year’s list of investor threats, according to the Washington, D.C.-based North American Securities Administrators Association (NASAA).
NASAA released its annual list of top investor threats on Monday, putting unsolicited investments and unregistered advisors as its number one concern. The list is based on a survey of state securities regulators.
The other top threats on this year’s list include: promissory notes; fraudulent oil and gas investments; real estate-related investments such as non-traded REITs, timeshare resales, and brokered mortgage notes; and Ponzi schemes.
“Investors should always be wary of unsolicited financial advice or investment opportunities,” says Judith Shaw, president of NASAA and Maine Securities Administrator, in a statement.
Education is the investor’s best defence against investment fraud, Shaw stresses. “Before making any decisions with your money, ask questions, make sure you understand the risks, and contact your jurisdiction’s securities regulators for detailed background information about those who sell securities or give investment advice, as well as about the products being offered,” she says.