These guidelines could help protect you from becoming the victim of an illegal financial scheme:
- Ask yourself (and the person trying to solicit your financial backing) whether the business actually involves a service or product being supplied to a buyer
- If so, what is the value add they offer?
- If not, leave it alone
- Find out if the business is regulated in terms of local legislation. Approach the FSB if they purport to be a financial services business
- Who are the principals of the business? Ask for their curriculum vitae & study them with plenty of scepticism. Google their names and find out if there is any bad publicity about their activities in South Africa or abroad. Ask your financial advisor, attorney & financial professionals to ascertain whether they have a bad reputation in their industry
- Ask to see the registration papers & financial statements of the business
- Are the promised returns on your capital extremely high? If they are, leave it alone
- Are their returns too smooth even during bad market downturns? If they are, do further research
- If you would like me to assist you in researching them, let me know at offshore@yebo.co.za