The Canadian Securities Administrators (CSA) are urging the public to investigate further when they encounter an investment opportunity advertised in the media.

“Regardless of the source, investors should protect themselves by researching investment opportunities before committing their money,” says Jean St-Gelais, chairman of the CSA and president & CEO of the Autorité des marchés financiers (Quebec). “Investors should not assume an opportunity is authentic simply based on where it appears or how it is presented.”

Regulators are mainly concerned about paid advertisements placed by those who may not be properly registered to trade in securities. As well, they say certain ads may provide misleading information to the public regarding potential investments.

These ads may appear across various types of media, including newspapers, magazines, television, radio, newsletters and the Internet.

In many cases, investments described in the advertisements may look or sound authentic, but unless investors verify the information first with an objective source, such as their provincial or territorial securities regulator, they could risk committing their money to a misleading or illegitimate opportunity, regulators say.

The Canada Revenue Agency (CRA) is also warning investors to be wary of paid ads that promote tax-saving incentives, especially those leading into RRSP season and tax time.

“Beware of charities that promise to provide an income tax receipt for more than you donated – legitimate charities issue receipts for the exact amount donated,” said CRA Commissioner Michel Dorais. “The CRA regularly audits to identify schemes that are set up to purposely avoid paying taxes. The CRA is also working with revenue agencies at an international level to combat tax evasion schemes.”