TORONTO, May 17, 2021 /CNW/ – The Canadian Securities Administrators (CSA) is warning the public about an investment scam claiming to represent Fidelity Investments.
The scam provides investors with documents outlining two investment opportunities that purportedly offer a guaranteed and high rate of return on the investments. The “Fidelity Capital Protected Fixed Income Fund” and the “Guaranteed Investment Bond” are not products offered by Fidelity Investments.
To make the documents appear more legitimate, they reference that the Financial Consumer Agency of Canada (FCAC) regulates the investment firm and its products, and that investors have a right to file a complaint with FCAC if they are dissatisfied. They also falsely state that the Canada Deposit Insurance Corporation (CDIC) will provide protection to people who invest in these products. FCAC does not regulate investment firms.
Canadians who believe they are a victim of this scam should contact their local securities regulator. Fidelity Investments has also issued an alert on this scam.
The CSA encourages investors to watch out for the following red flags in order to avoid investment scams:
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Ignore promises of “guaranteed” high returns with little or no risk: Generally, the higher the return, the higher the level of risk. Make sure the opportunity is suitable for your investment goals before investing your money.
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Review the prospectus: Generally, securities offered to the public are accompanied by a prospectus – a…
