Take Control of Your Financial Future

What is the New Brunswick Securities Commission? Crown Corporation Established in 2004 Double role 2

INVESTMENT ADVISER RELATIONSHIP Know who you’re dealing with

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

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 5

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; 6

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). 7

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. 8

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

AVOIDING & REPORTING FRAUD Invest in Knowing More™

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. 11

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 12

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! 13

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 14

Recognize – Common Scams Double Dip Ponzi Pyramid 15

Why a Ponzi Scam Fails 16

Why a Pyramid Scheme Fails 17

Reporting Fraud See: “Complaints Resource Kit” in your kit 18

Remember: Do a background check Hang up on unsolicited phone calls Never respond to spam Use common sense Contact us: