Alerts

The Manitoba Securities Commission
1130-405 Broadway
Winnipeg, MB
R3C 3L6

June 21, 2001

RRSP Scam

Winnipeg - The Manitoba Securities Commission is warning Manitobans about an investment scheme where individuals are told they can convert locked in pension plan money from an ex-employer into guaranteed money. The Commission suspects that meetings may have been scheduled to take place within the next week. The investment scheme and individuals involved are not registered with The Manitoba Securities Commission.

The scheme is generally promoted through advertisements placed in the classified section of local papers. The scheme claims that the company will manage a person's locked-in company pension plan and in turn will provide to the individual a certain percentage of the pension plan amount. The money comes to the plan holder in the form of a loan. There is also a substantial administration fee charged to the plan holder.

There may be tax implications that the investor is unaware of and may come to light at a much later date. A similar scheme resulted in significant tax penalties for persons involved.

These activities may be violating the provisions of The Manitoba Securities Act and possibly the provisions of the Income Tax Act. The best defense against being caught in such a scam is to consult with a professional financial adviser to see if this investment is suitable and legal. Concerned individuals are encouraged to contact The Manitoba Securities Commission at 945-2548.

Contact:
Ainsley Cunningham
Education and Information Coordinator
(204) 945-4733
aicunningh@gov.mb.ca