Before You Invest…
Kingdom Trust recommends investors follow these tips prior to purchasing an asset to help decrease the likelihood of being defrauded.
Investigate before you invest. Do the homework and perform the due diligence necessary to be truly informed about the asset. With self-directed accounts, your account custodian or administrator is not responsible for performing due diligence on your investment or helping you decide on any specific investment.
Get it in writing. Ask for written information about the person introducing you to the investment, the investment itself and any individuals associated with the investment sponsor. Then, research further and verify the information provided to you, with the following questions in mind:
- Does the research show that all are properly registered?
- Are the companies in good standing in the states in which they are organized or doing business?
- Are the individuals properly registered to sell the investment?
- Do those associated with the investment have the background necessary to make the investment a success?
- Does the investment itself make sense?
- Can you tell how you are going to get a positive return on your investment?
- Does the pitch that was made to you match the documentation you receive?
Performing basic online research on the asset and any associated parties can provide significant detail about the potential investment.
If it sounds too good to be true, it probably is. Very, very few investments can offer a guaranteed rate of return. Investments are risky by their very nature. No sponsor or sponsor’s agent should tell you an investment is safe.
Hire a professional. Spend the money to have everything reviewed by an attorney or other qualified professional. Since Kingdom Trust is not a fiduciary, it’s a very good idea to have the right team of professionals with which to consult when making any investment decisions.
Use common sense.
If you have a question or concern about a particular investment, or if you think you may have encountered fraud, contact the SEC, FINRA, NASAA or your state securities regulator for assistance and reporting.
Securities and Exchange Commission (SEC)
Office of Investor Education and Advocacy
100 F Street, NE
Washington, DC 20549
800.732.0330
SEC.gov | Investor.gov
Financial Industry Regulatory Authority (FINRA)
FINRA Complaints and Tips
9509 Key West Avenue
Rockville, Maryland 20850
301.590.6500
FINRA.org
North American Securities Administrators Association (NASAA)
750 First Street NE, Suite 1140
Washington, DC 20002
202.737.0900
NASAA.org