Ontario Securities Commission Investor Alert – August 2004
Check registration before you invest, warns the OSC. 

Toronto – The Ontario Securities Commission (OSC) is warning investors to check the registration status of any person or firm offering you investments or advice. The OSC has had recent complaints about unregistered sellers, and complaints about registered sellers who offer investments or advice that they’re not registered to provide. Generally, anyone selling securities or offering investment advice in Ontario must be registered with the OSC. Before you invest, follow these steps:

1. Get information.

Note the full name of the person you are dealing with and the name of their firm, and ask for written information about the investment.

2. Check if they’re registered.

You can do this online at www.osc.gov.on.ca, in the Registrants List, or call the OSC toll-free at 1-877-785-1555.

3. Check the registration category.

Firms and individuals are registered by category – each registration category has different education and experience requirements, and permits different activities. For example, a mutual fund dealer can sell and provide product advice on mutual funds, but they are not qualified to sell or provide advice on equities unless they hold further registrations. If they offer advice or a product that they’re not registered for, don’t invest money with them.

4. Verify the investment information with a reliable source.

Get a second opinion. If the investment is in a public company, you can check www.sedar.com to view the documents that public companies file with securities regulators.

In addition, be wary of salespeople who claim that they don't need to be registered in Ontario because they are based or registered in another province or country. If you are an investor living in Ontario, the person or company selling investment products or advice to you must be registered in Ontario to provide those services. The OSC is aware of investors being approached with unsolicited offers similar to the following example:

A salesperson offers a deal on commodities or other securities, and claims they don’t need to register to trade securities in Ontario. The salesperson may use high-pressure sales tactics, and usually sends a marketing package in the mail as a follow-up.

To protect yourself, the best strategy is to arm yourself with information. Before you hand over your money, understand how the investment works, and if it’s suitable for you. To ask questions or make a complaint, call the OSC Contact Centre at 1-877-785-1555. You can learn more about investment issues on-line at www.investorED.ca.