March is Fraud Prevention Month and the Mutual Fund Dealers Association of Canada (MFDA) wants to increase fraud awareness and prevention among Canadian investors.
the MFDA has created a Fraud Prevention Brochure with tips to help investors detect and prevent fraud. The brochure can be accessed online at the MFDA’s website.
“The brochure explains in clear and simple language steps that investors can take to protect themselves if they believe an investment may be fraudulent,” says Mark Gordon, MFDA president and CEO
The brochure teaches investors to be wary of any statements about a security that seem too good to be true. Examples of such statements include, but are not limited to, statements that an investment in a security is: no risk; guaranteed; a special deal just for the investor; and time limited
The brochure sets our specific actions that an investor can take if they are concerned or uncomfortable about a security that they are being offered, such as checking the disciplinary history and registration status of their adviser.
If investors have concerns about a security that they are being offered they can contact their mutual fund dealer’s compliance department or report their concerns directly to the MFDA by dialing 1-888-466-6332, or emailing complaints@mfda.ca.