Regulators in New Brunswick warn that they are seeing an increase in cold calls pitching unregistered investments to residents in that province.
The Financial and Consumer Services Commission (FCNB) issued an investor alert today warning that its enforcement division “is concerned about reports that two companies, MagellantradingFX and Magellan Trading Group, have been cold calling” residents in the province and soliciting investments.
“These companies are not registered to sell investments in the province. They appear to be located offshore and claim to specialize in foreign exchange, options and futures trading, all investments that traditionally are high risk and not for the average investor,” it warns.
The regulator cautions against dealing with unregistered companies generally, and suggests that investors who are approached with these sorts of solicitations should contact the FCNB. In the alert, it warns that illegitimate firms try to lure investors by using: company names that sound official, and are similar to legitimate companies; professional looking websites; and, sales methods such as cold calling, which is typically by phone, but can also be done via email or through social media.
“Before making any investment, it’s important to check to make sure that both the company and the salesperson are registered to sell securities in the province,” said Jake van der Laan, director of enforcement with FCNB. “No matter where they are located, persons or companies selling investments to New Brunswick residents are required to be registered with us, unless they qualify for specific exemptions.”
“Once you’ve sent money overseas, it becomes very difficult to get your money back,” said van der Laan. “Taking precautions, such as checking registration before investing, could help save your financial future.”