The Autorité des marchés financiers (AMF) is warning investors about exotic foreign exchange investments pitched by possibly unregistered firms and individuals.
The regulator says that it has learned that investors in Québec were recently solicited to purchase investments connected to the Iraqi dinar and the Vietnamese dong with the promise of a return when these currencies are revalued. It cautions investors to check that individuals and companies are registered in situations where they are promised a return on the purchase of a currency, as this is a regulated activity. And, the AMF asks investors to report any solicitation by an unregistered individual or firm.
The AMF also stresses that the foreign exchange market is “a complex, volatile and high-risk market”.
“The value of currencies can be influenced by social, political or economic events, as well as numerous other factors. The foreign exchange market is not for every investor, and if someone tells you otherwise, beware,” it warns.