The Autorité des marchés financiers is warning Quebecers to be cautious when making RRSP investments.

The AMF recommends that before contributing to an RRSP, investors should: check registration, carefully read any documentation, keep all documents, understand all the terms and conditions of an RRSP proposal before signing a contract, take notes of conversations, be very cautious if the product being offered or its return seems too good to be true, never forward cash to a sales rep and never issue any cheques in the rep’s name, and don’t make hasty decisions or decisions under pressure.

It also suggests considering automatic withdrawals, rather than last-minute contributions; cross-check any information from the Internet; be cautious of dipping into an RRSP, or other funds, for the purpose of investing in a tax-sheltered vehicle with higher returns; be very careful if are advised to cash or transfer all or part of RRSP funds.

For the 2004 tax year, the maximum contribution is equal to the lower of $15,500 or 18% of income earned in 2003.