The Nova Scotia Securities Commission is warning investors to be wary of unsolicited securities promotions, particularly over the telephone, based on claims about a listing, or prospective listing, on a stock exchange.

The investor alert cautions against all unsolicited recommendations. “You do not know the motives of the person on the other end of the phone, and they do not know you, your financial objectives or risk tolerance. They are not in a position to give you investment advice,” it says.

The NSSC says that a promoter may claim the investment being offered is listed on one or more stock exchanges, often located in a foreign country. “If this is true, it can easily be confirmed by checking with your financial adviser, with the stock exchange where the securities are listed, or your provincial securities regulator,” it suggests, adding, “If the security being promoted is listed on an exchange, the stock is available for purchase through your regular financial advisor, and there is no need to deal with a stranger on the telephone.”

It also warns against promises that securities will soon “go public” and be listed on a stock exchange. “Securities laws do not allow these kinds of claims,” it says. “Regardless of whether the company has applied for a listing, until the security listing is approved, they have no way of knowing the status of their approval and cannot make such a claim.”

The commission suggests being wary of investments listed on unfamiliar foreign stock markets.

It also urges investors to protect themselves by researching all investment opportunities before investing. “While no investment is without risk, researching investment opportunities may lessen the risk of falling victim to a scam,” it says. “In many cases, investments promoted via unsolicited telephone calls sound authentic. Investors should verify any of these types of investments with an objective source such as a registered financial advisor or through independent research. Once money changes hands, it’s often difficult or impossible to get it back.”