Watch who you invest with

The Financial Services Board has gone to great expense to establish legislation to protect the man in the street against poor financial advice. This should have a positive influence within the financial advice industry.
But, be warned, this is simply not enough. Time and time again you hear and read of people who suffered badly from either being lured into fraudulent investments offering high returns or simply being given the wrong advice.
It is amazing how people can hand over their capital, sometimes their life savings, to someone, without doing the necessary homework to establish if that person is fit and proper to look after their needs.
Here are some guidelines:
Ask for accreditation and a business card.
Establish how long the person has been in the business, his qualifications and if he is a member of a controlling body , e.g. a representative of a company or an independent affiliated to a recognised entity, such as the Insurance Brokers Council (IBC).
Obtain detailed quotations or written proposals whichever is applicable.
Study them and ask your bank manager, accountant or another consultant for their advice on those quotes. Always try to get a second opinion Make sure that whatever proposal or advice you receive, falls within your risk profile, that is how much risk you can afford to take in order to achieve your objective.
Make sure the business is done through a reputable company registered with the Financial Services Board or governed by the Collective Investment Schemes Control Act (No. 45 of 2002) Never conclude a financial transaction on the first consultation or meeting in order to avoid emotional decisions.
During times of declining interest, people dependent on interest income, often throw caution to the wind in order to earn that little bit more. Make sure you talk to the right people.