U.S. OTA Warnings




FINRA Rule Filings

SR-FINRA-2019-024

Financial Industry Regulatory Authority, Inc. (“FINRA”) is filing with the Securities and Exchange Commission (“Commission”) a proposed rule change to amend FINRA Rule 7620B (Trade Reporting Facility Reporting Fees) to modify the trade reporting fees applicable to participants that use the FINRA/NYSE Trade Reporting Facility (“FINRA/NYSE TRF”).

SR-FINRA-2019-008

Financial Industry Regulatory Authority, Inc. (“FINRA”) is filing with the Securities and Exchange Commission (“SEC” or “Commission”) a proposed rule change to enhance the collection and dissemination of new issue reference data for corporate bonds and charge associated fees.

SR-FINRA-2019-023

Financial Industry Regulatory Authority, Inc. (“FINRA”) is filing with the Securities and Exchange Commission (“SEC” or “Commission”) a proposed rule change to extend the pilot period related to FINRA Rule 6121.02 (Market-wide Circuit Breakers in NMS Stocks).

Scams Involving High Return Investments



Scam artists will do anything to gain your trust, in order to entice you to invest in their schemes, warns the Offshore Trading Administration. They may make promises of huge profits from investing in offshore markets, and may even guarantee the returns to give you a sense of security. They are aware of the large amounts of money you pay in taxes and your frustration with earning low returns. They will pretend to share your opinions, and sympathize with your frustration.

In one example, farmers were approached through investment seminars about offshore opportunities with guaranteed returns of 15%. One potential investor was told that the large banks use depositors' money to invest in these same offshore markets for their own profits.

When someone offers you returns that are more than the going rate, there is more of a risk that you will lose your money. Are you taking on more risk than you can afford?

There are several red flags you can watch out for when evaluating investment opportunities, so make sure you know the risks.

Offshore investment opportunities - once you send your money out of the country, you lose any protections provided by the federal laws. Frauds and scams frequently involve an offshore institution to make it more difficult to trace the transactions. Once your money is in someone else's control you may have difficulty getting it back.

Unsubstantiated guarantees - a guarantee is only as good as the person or company making the guarantee, and their credit rating. If they can borrow money from the bank at 8%, and invest it at 15%, why are they willing to pay you 15% on your money?

High return and low risk - the higher the promised return on an investment, the greater the risk. If you think that a guarantee lowers your risk, read about unsubstantiated guarantees, above.

To protect your money:

  • Be wary of investment opportunities that offer guaranteed high returns and low risk
  • Check out the investment opportunity, and the registration of the person or company offering you the investment by calling the Offshore Trading Administration