Montréal - The Autorité des marchés financiers ("AMF") is urging caution on the part of investors who might be lured by secret investment programs that suggest involvement by well-regarded international banks and promise enormous returns.
Based on information gathered by the AMF, a number of Québec investors were recently tempted by such schemes, which often use the words "prime bank" for promotional purposes. These bogus investment schemes usually highlight the following:
- Exclusive access to a clandestine market for trading in the debt securities of major institutions, purportedly some of the world's leading banks;
- A rare opportunity for which only a few individuals are authorized to conduct such transactions, which are usually reserved for large corporations and very wealthy investors;
- Any risk tied to this investment is virtually nil since the funds are never transferred out of the bank accounts;
- A unique opportunity since several millions of dollars are usually required for this type of investment. The promoters of these schemes often propose that investors pool their financial resources to take part in this type of investing opportunity;
- Exorbitant returns often in excess of 100%;
- The confidential nature of the agreement that investors are asked to sign.
Reminder to investors
The AMF wishes to remind investors of the importance of being cautious before making an investment This link will open in a new window (document in French only) regardless of where the firms or individuals offering investments are based. Investors should make sure that firms and individuals acting as intermediaries are authorized to do so by consulting the register on the AMF website or calling the AMF Information Centre.
As well, investors should go over the five steps that can help them determine possible fraud.
The Autorité des marchés financiers ("AMF") is the regulatory and oversight body for Québec's financial sector.
- 30 -
Sylvain Théberge: 514-940-2176
Québec City: 418-525-0337
Twitter : @lautorite This link will open in a new window