1. The Ontario Securities Commission Investigate before you invest

2. Financial services oversight in Canada Securities regulation - provincial responsibility Canadian Securities Administrators Self-regulatory organizations: IDA, MFDA, RS Insurance and insolvency: CDIC, CIPF, MFDA IPC

3. Financial services oversight in Ontario FSCO OSC OSFI Insurance, Pensions Credit Unions Capital Markets Banks

4. OSC mandate Provide protection to investors from unfair, improper or fraudulent practices Foster fair and efficient capital markets and confidence in the capital markets

5. OSC responsibilities Register people and companies that advise on or trade in securities Ensure timely and accurate disclosure Monitor compliance of public companies Create, update and enforce the rules

6. Inquiries and complaints Inquiries Complaints Tips OSC Contact Centre 1-877-785-1555 www.osc.gov.on.ca

7. Investment fraud Millions lost in Ontario each year Constantly evolving Often goes unreported Victims can be unknowing participants Difficult to recover money taken

8. Investment fraud Affinity fraud: Con artist finds a common interest You trust them because they ’ re like you Community groups, religious groups, ethnic groups, clubs

9. Investment fraud Ponzi/pyramid schemes: Investment “ returns ” are paid using money from new recruits Scheme collapses when new investors become scarce

10. Investment fraud Accredited investor scams: Unsolicited phone call Investment in pre-IPO company Sign documents that don ’ t reflect your situation

11. High return, offshore investing: large return, with little or no risk money goes outside Ontario Investment fraud

12. Investing online: Phoney websites Hot tips, bulletin boards, chat groups Spam e-mail Phishing

13. Investment fraud Red flags: Unsolicited investment offer Tax advantages (or avoidance) Guaranteed high returns – no risk Unregistered seller Wiring money offshore

14. Could it happen to you? Fear of not having enough Desire for big break Unclear financial goals Focus on comfort level, not credentials

15. Unsuitable investments Do you understand the investment? What are the risks? How do you get your money out? Volatility of business/industry Diversification Borrowing to invest (leverage)

16. Risk and return

17. Do your research OSC website – www.osc.gov.on.ca SEDAR – www.sedar.com SEDI – www.sedi.ca Stock exchanges Financial press

18. Do your research Financial statements Management ’ s discussion & analysis Prospectus and offering documents Company communications

19. Do your research Ask questions and read your documents Establish realistic goals Diversify your investments and your sources of advice Understand what you invest in, and the associated risk

20. Are they registered? 1-877-785-1555 Do your research

21. Working with an adviser Types of advisers Compensation Opening an account Responsibilities – yours and theirs

22. Resources Investor education kit www.investorED.ca www.osc.gov.on.ca 1-877-785-1555

23. Investigate before you invest