The Financial and Consumer Services Commission (FCNB) is warning about unregistered firms soliciting investors.
Jake Van der Laan, director of IT and regulatory informatics, said they are aware of two companies targeting people in New Brunswick.
“HB Global, which purports to hold itself as being in Ireland, and Blue Sail Trading — we’re not quite sure where they’re from but there are suggestions they are from Costa Rica, Panama, Colombia or even Dubai,” said Van der Laan.
Any individual or firm acting as an adviser or in the business of trading in securities or exchange contracts must register with the commission.
Van der Laan said there are many risks when dealing with unregistered companies.
“If you’re dealing with someone who isn’t registered, in particular, if they’re outside the jurisdiction, there’s very little that we as a regulator can do to address any concerns and for you to have any assurance that the entities you’re dealing with are on the up and up,” he said.
Van der Laan also warned there are many illegal unregistered entities out there that are simply looking to scam people.
He said it is very important for people to do their homework before making an investment.
“Investigate the entities you’re dealing with, Google them, call FCNB, ask the questions, go to our website and do a search of the name of the organization to determine if they’re registered or not, and if in doubt, don’t invest,” Van der Laan said.
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