Wednesday, August 27, 2014

Investor ALERT : Outside Business Activities

Many people don't know that they are vulnerable to solicitation by their “ advisor” for “opportunities " outside the scope of the registered dealer with which they have an account. These are called Outside Business Activities (OBA , also “Off book”) and too often lead to significant losses for investors .  These OBA activities include :

Reps who borrow from clients, allow clients to borrow from them, or who get involved in investment schemes with clients - these have created a major conflict-of-interest which is against the rules . Other "Off book" transactions could include unregistered securities, Ponzi schemes , investment scams,securities sold outside of the dealer, including Principal Protected Notes deemed to be securities under provincial legislation; private placements; limited partnerships; other exempt securities; and, referral of securities related business outside of the dealer - all can cause harm .Be Aware- CAVEAT EMPTOR. Read the ALERT

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