– but International offer probably too good to be true!

investment returns attract but probably too good to be true

In times where there has been severe impacts on the valuation of investment assets – and prolonged periods of low returns – offers of higher investment returns attract the attention of many, especially those who feel they have less time available to recover their losses.

During the buoyant period after the post-GFC recovery had been under way for about a year, one of our clients contacted us seeking advice about an ‘investment’ offer that had been put to them by telemarketers representing an American promoter, to investment in a direct share portfolio in a company in the United States of America.

Prudently, the client asked the sales person to contact their ContinuumFP Adviser: needless to say, none of the Continuum Financial Planners team was ever contacted by this group. (Unfortunately, this is not an unusual event but it has brought to light the opportunity to pass on a timely caution.)

Investment returns attract, but don’t ‘get burned’

At the time, we enquired with ASIC as to whether there were any general alerts out about this activity. There was none, however the following advice was put to us by ASIC. (Note: the FIDO website has been replaced with the MoneySmart website. The relevant links below have been changed to the updated site.):-

“Unfortunately it sounds like your client could have been contacted by an unlicensed broker, selling shares in offshore companies. ASIC is aware of this type of scam and is working with various overseas securities regulators to expose and eliminate the practice of cold calling by unlicensed dealers. Our advice to consumers is not to respond to the notification (email/ fax/ letters/ telephone call) nor to use any link enclosed in the email; or hang up.
There is a list of cold callers available on the FIDO website and a direct link has been provided for your convenience. You may want to provide this link to your client.
Although ASIC does not have jurisdiction there is information on our website to warn and assist consumers with these types of scams, for further information please refer to the ASIC-FIDO website.
ASIC also offers the publication called FIDO news that is designed to keep consumers up to date with the latest consumer news and information about scams. If you wish to subscribe you can select the ‘Register Now’ link under the “Fido News” heading on the ASIC-FIDO website or accessing the … link (provided).
Thank you for taking the time to write to us about this matter. Your information is very useful to help keep the FIDO website up to date.
Due to the unique nature of each enquiry ASIC is not able to provide interpretations or recommendations specific to some enquiries or circumstances. If you require further information please seek independent advice through an ASIC registered agent, your accountant or solicitor.”

We commend the above advice from ASIC to you and suggest that you pass this on to any of your friends or contacts who may be exposed to such offers. The current MoneySmart website page on this matter is also worth a visit – see Investment Scams.

Investment returns attract – strategic advice succeeds

The Continuum Financial Planners Pty Ltd website has several articles on strategic investing and appropriate asset allocation, some of which are:- The Blended Portfolio; and Dollar Cost Averaging. Our experienced advisers are available to provide advice: to satisfy yourself as to our qualifications, licence status and continuing professional development, refer to our FAQ Page, which also answers questions on how we work with you and in your best interest; and to arrange a meeting, call 07-34213456 or use the Contact Us facility and be assured of prompt attention.

[Originally posted on 7 May 2010; it has been occasionally updated/ revised, most recently in January 2021.]