Advisory on how to protect financial investments out
The Financial Sector Forum (FSF) in the country has recently issued an advisory to guide the investing public on how to protect their investments.
The FSF is a voluntary interagency body comprising the heads of the Bangko Sentral ng Pilipinas (BSP), Insurance Commission (IC), Philippine Deposit Insurance Corporation (PDIC) and Securities and Exchange Commission (SEC) principally to provide an institutionalized framework for coordinating the supervision and regulation of the financial system, according to a report posted on the BSP’s website.
The advisory, which come in four versions such as Filipino, Cebuano, Ilocano and English, are part of FSF’s continuing program to promote consumer protection and a strong financial system.
The practical reminders on how to protect financial investments can be downloaded at the BSP website. These reminders are as follows:
* Know the financial product that you plan to invest in, particularly the terms and conditions in fine print. Do not invest if you do not understand the product or any of its terms and conditions.
* Do not be enticed by the promise of extremely high returns. Understand that the higher the return on investments, the greater the risk.
Avoid pyramiding investment schemes, including internet-based, that induce investors to recruit others in exchange for more income.
* Make sure that the actual investment product/instrument, if sold in the Philippines, is registered with the Securities and Exchange Commission (SEC), or has the prior approval of the Insurance Commission in the case of insurance products.
A Certificate of Incorporation from the SEC does not automatically mean that its investment products/instruments are authorized by the SEC.
* Check the background of the issuing entity and the people behind it. Investment products issued by banks should be authorized by the BSP.
* Deal only with solicitors, agents and brokers licensed by the SEC, or with employees authorized by banks if the product is bank-issued.
* Investment products/instruments are not insured by the Philippine Deposit Insurance Corporation.
* Keep proof of investments such as official receipts, investment contracts, certificates of participation, and the like, in a secure place.
Further information can be accessed at the websites of BSP (www.bsp.gov.ph), SEC (www.sec.gov.ph) and IC (www.insurance.gov.ph). (PIA)
