You've likely heard of the latest possible high profile Ponzi scheme to rock the investment world.
Montreal investment advisor Earl Jones has disappeared with what looks like millions of dollars leaving hundreds of clients without their life savings. Jones was unlicensed meaning investors may not be able to recoup their losses. The story has prompted a couple of viewers to ask if we have anything in BC to protect investors from this sort of tragedy.
The answer is yes - the BC Securities Commission and the Investment Industry Regulatory Organization of Canada are both regulatory bodies that act as watchdogs. But they can't do their job --if you don't do your homework.
There are few steps to take before you sign up with a financial advisor.
Ask people whose judgment you trust for recommendations. Get more than one. Google the person's name. You'd be amazed what that can turn up. Check to see if the advisor and the firm he or she represents are registered. That will tell you both if they're qualified and that they are subject to the rules and regulations of the province. Finally, check to see if they have ever faced disciplinary action --a good thing to know if you're building a trust relationship.
It is not hard to determine if a person is registered or has faced disciplinary action. You can find out through the BC Securities Commission website.
