MFDA Offers Tips to Investors on How to Detect and Avoid Fraud

TORONTO, March 3, 2014 /CNW/ - March is Fraud Prevention Month and the Mutual Fund Dealers Association of Canada (the "MFDA") wants to increase fraud awareness and prevention among Canadian investors.

For Fraud Prevention Month the MFDA has created a Fraud Prevention Brochure with tips to help investors detect and prevent fraud. The Brochure can be accessed online at the MFDA's website under the "For Investors" section or by going to http://www.mfda.ca/investors/brochure/Fraudbrochure.pdf.

"The brochure explains in clear and simple language steps that investors can take to protect themselves if they believe an investment may be fraudulent," said MFDA President and CEO Mark Gordon.

The Fraud Prevention Brochure teaches investors to be wary of any statements about a security that seem too good to be true.  Examples of such statements include, but are not limited to, statements that an investment in a security is:

• No risk
• Guaranteed
• A special deal just for you
• Time limited

The brochure sets our specific actions that an investor can take if they are concerned or uncomfortable about a security that they are being offered, such as checking the disciplinary history and registration status of their adviser. The MFDA continues to encourage all investors to review the "Check an Advisor" section of the MFDA website at http://www.mfda.ca/investors/advisor.html. 

Most importantly, if an investor has concerns about a security that they are being offered they can contact their mutual fund dealer's compliance department or report their concerns directly to the MFDA by dialing 1-888-466-6332, or emailing [email protected].

The MFDA is the self-regulatory organization for Canadian mutual fund dealers. The MFDA regulates the operations, standards of practice and business conduct of its 111 Members and their approximately 80,000 Approved Persons with a mandate to protect investors and the public interest.

SOURCE: Mutual Fund Dealers Association of Canada

Ian Strulovitch, Director, Public Affairs, [phone], [email protected]