
By Bill Reilly
Subscribe to our original industry insightsOn January 10, 2022, the North American Securities Administrators Association (“NASAA”) announced its annual list of top investor threats for 2022. To no one’s surprise the 2022 list closely tracks the 2021 list, with the internet being the driving force behind the purchase of popular and volatile unregulated activity, including:
NASAA further indicated that digital assets “do not fall neatly in the existing investor framework and may be easier for promoters of these products to fleece the public.” NASAA representatives led by Joe Borg, Alabama Securities Director and Joseph Rotunda, Texas State Securities Board Enforcement Director, echoed concerns related to investments in cryptocurrencies or crypto-related investments.
“Investments in cryptocurrency trading programs, interests in crypto mining pools, crypto depository accounts and securitized tokens should be seen for what they are: extremely risky speculation with a high risk of loss,” said Rotunda.
NASAA representatives also urged investors to practice the following tips to identify and protect themselves from investment scams, including:
Oyster’s consultants include former senior regulators and compliance professionals with unique insight into how these issues can impact firms and advisors, including the potential for undisclosed outside business activity. Sadly, seniors and other vulnerable investors are often the target for these types of investment scams. Oyster can work with your firm to ensure proper policies, procedures and training are in place to guard against these risks.
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