The Nova Scotia Securities Commission is alerting investors that Balboa International is not registered to sell securities in the province.
At least one Nova Scotia investor was contacted by telephone by a representative of this company and solicited to invest in gold options. Trading in options can involve a lot of risk and any person considering options should seek professional advice from a registered firm or representative before investing.
Balboa International appears to be related to Balboa Forex, and both appear to be based out of Costa Rica. The Nova Scotia Securities Commission issued an Investor Alert on Sept. 12 warning investors about Balboa Forex.
Some red flags to watch and listen for when you are approached about any investment are:
-– the offer or promise of very high returns, such as 10 per cent a month or the ability to double your money in a short time
–- zero risk or impossible to lose investments pressure to make quick, on-the-spot decisions
–- the company and the representative are not registered to trade in securities and shy away from or deflect answering questions about needing to be registered
The commission urges Nova Scotians to exercise extreme caution when dealing with firms that are not registered in Nova Scotia.
It is illegal to solicit investments in Nova Scotia without registering with the commission and complying with securities laws. To see if a company or person is registered, you can check the Canadian Securities Administrators’ National Registration Search.
If people are contacted about these types of investments, they are urged to contact the commission to talk to an investigator or to report a scam.
The Nova Scotia Securities Commission is the provincial government agency responsible for regulating the investment industry in the province.