Take Control of Your Financial Future

1. Take Control of Your Financial Future Recognizing, Reporting and Avoiding Fraud

2. Whatis the New Brunswick Securities Commission? • Crown Corporation • Established in 2004 • Double role

3. Investment adviser relationship Know who you’re dealing with

4. Registration • Check your adviser’s registration • The NBSC can tell you if a firm or individual is registered in New Brunswick

5. What an adviser can’t do for you Your adviser will not be able to: • Predict the performance of the markets with certainty • Recommend investments that are always profitable • Act on vague or general instructions to buy or sell investments • Meet unrealistic goals or expectations of profit

6. Do I have a complaint? You may have a complaint if your financial adviser:  • is not registered to sell the investments being recommended; • takes money out of your account, or buys or sells securities with your money, without first getting your permission (unless one of the exemptions previously discussed applies) • switches you from one mutual fund to another when there is no legitimate reason;

7. Do I have a complaint? • does not take reasonable care to see that your investment request is executed at the best possible price, given the market conditions at the time; or • recommends you buy or sell a security that is unsuitable based on the information gathered from you in the Know Your Client form (KYC).

8. What the NBSC Can Do • answer general questions about investment products and services, • tell you if a firm or representative is registered in New Brunswick, • tell you if an individual or firm has ever been disciplined by the NBSC, • suggest options for pursuing your complaint and tell you which organization may be most helpful • enforce compliance with securities legislation, and • act against market misconduct, including removing from the market those who do not comply with the law or who cheat investors.

9. What the NBSC Can’t Do • undo a transaction, • give advice on an investment, • give legal advice, or • comment on an ongoing investigation.

10. Avoiding & reporting fraud Invest in Knowing More™

11. Avoid, Recognize, Report • Avoiding a scam before it happens • Recognizing a scam • Types of scams • How you might be approached See: “Protecting Your Money from Frauds and Scams” in your kit.

12. Avoid – Do a Background Check • Step 1- Check your adviser’s registration • Step 2 - Check for disciplinary action • Step 3 - Check the company’s history • Step 4 - Check the news • Step 5 - Check other search tools

13. Recognize - Red Flags of Fraud • Guaranteed high returns – no risk • Insider tips – get in now! • Offshore investment – tax free! • Profit like the experts! • Great investment opportunity – your friends can’t be wrong!

14. Recognize – Common Scams • Boiler rooms (See: “Boiler Room Scams – Could you be vulnerable?” in your kit) • Internet Fraud (See: “Investment Fraud and the Internet” in your kit) • Affinity Fraud

15. Recognize – Common Scams • Double Dip • Ponzi • Pyramid

16. Why a Ponzi Scam Fails

17. Why a Pyramid Scheme Fails

18. Reporting Fraud www.nbsc-cvmnb.ca 1-866-933-2222 See: “Complaints Resource Kit” in your kit

19. Remember: • Do a background check • Hang up on unsolicited phone calls • Never respond to spam • Use commonsense • Contact us: 1 866 933-2222 www.nbsc-cvmnb.ca information@nbsc-cvmnb.ca @NBSecuritiesCom