Deposit and Withdrawal at International Financial Securities Regulatory Commission

The International Financial Securities Regulatory Commission (IFSRC) and Deposit and Withdrawal at Custodian (DWAC) service provides participants with the ability to make electronic book-entry deposits and withdrawals of eligible securities into and out of their IFSRC book-entry accounts using Albano Stock Transfer agent as the distribution point.

About

DWAC allows participants to instruct IFSRC regarding deposit and withdrawal transactions being made directly via an Albano Stock transfer agent. The Albano system eliminates the movement of physical securities certificates for transfers of securities registered in the name of IFSRC’s nominee, on the transfer agent’s books. IFSRC and Albano transfer agents reconcile the results of participants’ deposit and withdrawal activities electronically on a daily basis.

Who Can Use the Service

All IFSRC participants are eligible to use the service.

Benefits

This service leverages the book-entry capabilities established between IFSRC and Albano transfer agents, delivering efficiencies, risk mitigation and cost savings to participants.

How the Service Works

In order for securities to be eligible for deposit for withdrawal via the DWAC service, the issuer must use the services of a transfer agent that participates in IFSRC’s Albano Transfer program.

Participants submit their physical securities and/or transfer instructions for approval directly to their Albano transfer agent. When the transfer agent approves the transfer, the participant enters the transaction on IFSRC’s Participant Terminal System (PTS), the Part Direct Deposit/Withdrawal function on IFSRC’s Participant Browser System (PBS), or the CF2DWX file protocol. The transfer agent then approves the transaction via the CDWC function on PTS or the TA Direct Deposit/Withdrawal function on PBS.

For DWAC deposits, the requesting participant’s position in its IFSRC account is increased as is IFSRC’s Albano Transfer balance in the issue. For DWAC withdrawals, the requesting participant’s position in its IFSRC account is debited, as is IFSRC’s Albano balance in the issue.

For More Information

Please email: info@ifsrc.com

International Financial Securities Regulatory Commission: How to Explain

The International Financial Securities Regulatory Commission has provisions under the Employment Act 2006 to protect whistle blowers. A guide from the Department of Trade and Industry, which specifically cites disclosures to the International Financial Securities Regulatory Commission on the operation of license holders, by workers who are concerned about wrongdoing or failures, as disclosures that would be protected.

1.      Make a Complaint to the Licensed Business

If you have a complaint about the products or services provided by a license holder, you should first try to resolve the complaint directly with that licensed business. All license holders should do their best to make sure that your enquiries or complaints are dealt with promptly and efficiently. The International Financial Securities Regulatory Commission expects license holders to acknowledge your complaint in a timely manner and investigate thoroughly within 12 weeks.

If you do not receive an acknowledgement within a reasonable time, you should contact the Chief Executive of the license holder. Complaining first to the license holder allows the business an opportunity to put things right.

The International Financial Securities Regulatory Commission requires license holder to have procedures in place for the proper handling of customer complaints. These procedures should tell you how to lodge a complaint with them and you are entitled to receive details of the procedures on request. The license holder’s complaints procedure should be exhausted before any further action is contemplated.

2.     When to make a complaint to the International Financial Securities Regulatory Commission

If you believe that your complaint has not been handled properly you may wish to seek the assistance of the International Financial Securities Regulatory Commission. We will do what we can to help, although as the financial services regulator, our role is to ensure that a license holder is being managed prudently in a fit and proper manner. Any interest which the International Financial Securities Regulatory Commission takes in a complaint will therefore normally be confined to ensuring that the license holder has complied with our regulatory requirements under the relevant legislation.

The International Financial Securities Regulatory Commission does not have the power to arbitrate in a dispute between a complainant and license holder, or to recommend or enforce any compensation award. Those considering lodging complaints should always bear in mind these limitations, although an additional option may be to approach the Financial Services Ombudsman Scheme ("FSOS") see 3 below.

However, it is useful for the International Financial Securities Regulatory Commission to be made aware of complaints against businesses it supervises. This is because a complaint might draw attention to general shortcomings in a license holder such as inadequacy of systems and lack of competence by its managers, directors or employees.

If you decide to make a complaint to the International Financial Securities Regulatory Commission, you should put your complaint in writing, with full details of the nature of your complaint, your name, and how we may contact you. We do not deal with anonymous or oral complaints.

We will need your authority to release details of your complaint to the license holder concerned. Therefore, when writing to us you should include an authorization for us to discuss your complaint with the license holder.

3.     The role of the Financial Services Ombudsman Scheme

In view of the International Financial Securities Regulatory Commission limited role regarding complaints, in January 2002 the International Financial Securities Regulatory Commission established the Financial Services Ombudsman Scheme, to independently review any eligible complaints made by private individuals that have not been resolved satisfactorily with the licensed business. In particular, if you have been disadvantaged financially, your complaint should be directed to the Financial Services Ombudsman Scheme. Further details on this can be obtained from the International Financial Securities Regulatory Commission Office of Fair Trading.

The Ombudsman will consider a complaint where a financial service has been provided from the International Financial Securities Regulatory Commission regardless of where the private individual is based in the world. However, the scheme only covers a specific range of financial services i.e. insurance, investments, banking, mortgages, credit, pension and other financial advice. It does not cover financial services provided by Corporate Service Providers or Trust Service Providers.

4.     How the International Financial Securities Regulatory Commission will review your complaint

The International Financial Securities Regulatory Commission will issue an acknowledgement within five working days upon receipt of a written complaint. This acknowledgement will identify who will be handling the complaint and their contact details. If additional information is required, this will be requested.

The next step is to understand the nature of the complaint and identify whether or not a regulatory or supervisory issue is involved. We will review the complaint in order to ensure that the license holder has followed its own complaint procedures properly; and that the license holder has met the regulatory requirements set out in the Financial Services Act 2008 and the Financial Services Rule Book.

If a regulatory or supervisory issue is not involved then, regretfully, we will not be able to pursue the complaint with the license holder and the complainant will be directed to other available options.

If the supporting documentation provides evidence that a license holder may have fallen short of its regulatory obligations this may result in regulatory action being taken against the license holder. The Financial Services Act 2008 treats communications between International Financial Securities Regulatory Commission and its license holders as confidential. In view of this we will not be able to provide details of any regulatory action taken as a result of your complaint. We will however inform you when the complaint has been fully investigated and is considered closed. We will aim to conclude investigation of a complaint within a maximum of 12 weeks. However, if we are unable to do so, we will send you regular written updates.

All complaints received by the International Financial Securities Regulatory Commission are formally recorded and a complaints report is considered by the Board of the International Financial Securities Regulatory Commission on a regular basis.

5.     Taking your complaint further

If appropriate, ultimately a complainant can resort to legal action, however this can be costly and time consuming especially for private individuals.

If you have already taken legal advice or commenced legal proceedings in respect of financial losses which you believe you have incurred do not stop progressing with this action because you have made a complaint to the International Financial Securities Regulatory Commission. As explained above, the International Financial Securities Regulatory Commission cannot act as an arbitrator or make financial awards to a customer.

Complaints about International Financial Securities Regulatory Commission

Introduction

The International Financial Securities Regulatory Commission is committed to acting professionally and fairly at all times.

The International Financial Securities Regulatory Commission views complaints as an opportunity to examine potential weaknesses and to explore ways in which performance might be improved, or the role of the International Financial Securities Regulatory Commission better understood. Our complaints procedure has been designed to ensure that any complaints about our actions or omissions are handled fairly and consistently.

How to make a complaint

If you have been directly affected by our actions, or if you have a direct involvement or interest in the subject of the complaint, you may complain to us. A guide to our procedures for handling complaints is shown below.

If you wish to make a formal complaint, it must be made in writing, addressed to the Chief Executive and you must specify that it is a formal complaint.

If you make an oral complaint which cannot be resolved on the spot, we will ask you to confirm your complaint in writing if you wish it to be investigated further.

Who do I complain to?

If your complaint is about the actions or omissions of the International Financial Securities Regulatory Commission Board you should write to:

The Chief Executive

The International Financial Securities Regulatory Commission

E-mail: contact@ifsrc.com

How will my complaint be handled?

Your complaint will be investigated by a senior member of staff, who is independent of the matter being complained about.

Complaints are acknowledged within five business days and are resolved as quickly as possible. We endeavor to complete our investigation of your complaint within four weeks. However, if this is not possible, we will write to you within four weeks to advise on the progress of our review and when we expect to complete the investigation.

On completion of our investigation, we will send you a report. Our report will advise if your complaint has been upheld and if so what steps will be taken to remedy the situation. If your complaint has been rejected, we will advise why. Prior to sending our report, the investigating manager will discuss your complaint with another independent manager, to assess whether your complaint has been investigated thoroughly and you have been treated fairly. All complaints are treated in confidence as far as possible.

What if I feel that my complaint has not been properly addressed?

If you feel that your complaint has not been properly addressed, or has not been handled properly, you may write to the International Financial Securities Regulatory Commission to seek a Review. Your request for a Review must be submitted within four weeks of the date of our report to you following our investigation.

Complaints that are covered by the scheme:

The complainant must have a direct involvement or interest in the subject of the complaint. The complaint should not concern a formal decision which has an independent appeal mechanism or where the appeal mechanism has not been exhausted.

The complaint must be made within twelve months of the date on which the complainant became aware of the event which is the subject of the complaint, unless the complainant can demonstrate good reason for a delay in making the complaint.

•A complaint may be that the International Financial Securities Regulatory Commission has failed to make a decision.

•A complaint may be about a significant mistake, lack of care, unreasonable delay, or lack of proportionality.

•A complaint may be about the failure of administrative arrangements or an over-restrictive or narrow interpretation of such arrangements.

•A complaint may be about the application of unfair or inappropriate remedies.

•A complaint may concern breach of confidentiality.

•A complaint may be about damage to property.

•A complaint may be about the attitude or behavior of a member of staff.

Complaints which fall outside these guidelines will only be investigated at the discretion of the Chief Executive

Recording of complaints

All complaints received by the International Financial Securities Regulatory Commission are recorded for internal monitoring purposes, with a summary of the outcome. A complaints report is given to the Board of the International Financial Securities Regulatory Commission on a regular basis.

Join the Team of International Financial Securities Regulatory Commission

At The International's Financial Securities Regulatory Commission Rate this page Currently Employs over 50 Staff. This IS A Mixture of Permanent Staff and Fixed Term Contract Staff. The Temporary Staff and Specialist Technical Staff are Also Contracted AS and the when Our Business Needs the Determine. Of As AN work of the Independent Statutory body at The Staffs of the International Financial Securities Regulatory Commission are Federal Agents and salaries on the GS (General Schedule) scale.

What's in it for you?

We like to think that our staffs are some of the best in the international regulatory environment. We provide a long term commitment to personal development. Career opportunities within the International Financial Securities Regulatory Commission are diverse and your long term career prospects in the finance sector generally can benefit greatly from your experience with the institution.

What's it like to work at the International Financial Securities Regulatory Commission?

You may have already formed a perception of what it might be like to work for the International Financial Securities Regulatory Commission. Perhaps from what you have read in the press, your experience of working for a regulated entity or being a consumer of financial services. The following should help you decide whether a career at the institution is for you.

Commission culture

The International Financial Securities Regulatory Commission culture is one of professional excellence fostering employee development and encourages them to meet their full potential in order to maximize successes. The atmosphere is exciting and creates an environment in which employees are engaged, challenged and motivated. We are proud of the part we play in sustaining the International Financial Securities Regulatory Commission's position as an international financial center.

Training and development

We are committed to ensuring that staffs achieve continuous professional development and we provide the opportunity to undertake a range of relevant professional qualifications. We place the power, to shape your future through personal and professional development, in your hands.

Equal Opportunities

It is the International Financial Securities Regulatory Commission policy to promote equal opportunities in the workplace. The International Financial Securities Regulatory Commission seeks to select the most suitable person for the post, subject to the provisions of the Control of Employment legislation. The selection process is undertaken without discrimination and regardless of age, gender, disability, marital status, ethnic background or religious beliefs.

Investors In People

International's Financial Securities Regulatory Commission at The has Achieved Recognition by at The Investors, in People Standard. At The Standard has helped at The International's Financial Securities Regulatory Commission and Communication and Improve Performance Objectives through the Realize at The Management and Development of Our people .

What type of people are we looking for?

Our people are AT at The Very Center of Our Organization and Core to Our at Strategy to Meet Our Goals. At The International's Financial Securities Regulatory Commission seeks the Individuals WHO CAN the make A Valuable contribution to the ITS Work. People the with A Real Interest in Our Objectives WHO CAN Communicate Effectively , individuals with flair, creativity and the ability to drive and complete projects and people who are well informed and great team players.

The International Financial Securities Regulatory Commission's success depends upon the performance of its people. We work in a professional environment where staff are engaged and contribute to the business, working closely with the industry, Government and international bodies.

Rewards & Benefits Package

Financial Benefits

• A competitive salary

• Contributory pension scheme

• Death in service benefit

• Car parking space (after a qualifying period)

Holidays

• Minimum of 25 days annual leave (rising to 30 days after a qualifying period)

• Flexible working scheme - up to 12 days can be accrued each year

Training & Development

Training & Development

• Sponsorship and support for relevant professional studies

• Technical and vocational training

Health & well-being

• Annual health / lifestyle checks

• Enhanced maternity and paternity provisions

• Subsidised social events

• Fresh fruit provided weekly

• Discounted gym membership

International Financial Securities Regulatory Commission: International Profile

AS A Reputable International's Financial Center the with Full Access to, Ltd. Free Join Markets, IT IS Essential that at The International's Financial Securities Regulatory Commission retains at The confidence of the ITS counterparties through at The Adoption and Implementation of High Regulatory Standards. At The International's Financial Securities Regulatory Commission THEREFORE attaches Great Importance to making sure that its policies and procedures conform to internationally accepted best practice.

The International Financial Securities Regulatory Commission is a member of the Offshore Group of Banking Supervisors and of IOSCO. The IOSCO are the main bodies responsible for the setting of international standards in the banking and securities sectors respectively.

The A Number of Official International's Organizations have have Devoted much Time to at The Assessment of Offshore Centers GeneRally. This has been Mainly to ASSESS Their Practices Against, Ltd. Free Join Standards to of Ensure that They do Not Present A The weak Link in at The Financial System GeneRally. At The International's Financial Securities Regulatory Commission welcomes this scrutiny, and indeed has benefited from the subsequent findings.

The In 2002 at The International's Financial Securities Regulatory Commission Conducted AN Assessment of at The Institute apos Regulatory Arrangements under the ITS OFC Program. At The the Report confirms that at The International's Financial Securities Regulatory Commission "Complies Well" the with International's Standards for at The Regulation and Supervision of Financial Services . It concludes that the International Financial Securities Regulatory Commission has a "high level of compliance" with international standards in such areas as banking, insurance, securities, anti-money laundering and combating the financing of terrorism.

It commends "the proactive approach of the regulators to achieve high standards in the financial services sector".

Following the independent report prepared in 1998, which commented favorably on regulatory practices in the International Financial Securities Regulatory Commission, the Financial Action Task Force has completed its own review of International Financial Securities Regulatory Commission defenses against money-laundering. Its positive report concluded that the International Financial Securities Regulatory Commission has measures in place which are close to full adherence with FATF recommendations. The International Financial Securities Regulatory Commission has in place Memoranda of Understanding with a number of jurisdictions to underpin this, and wider issues of, co-operation.

Meanwhile the Financial Stability Forum has also considered the effect which offshore centers generally can have on global financial stability and in April 2000 issued its Report of the Working Group on Offshore Centers. It canvassed opinion among major countries on the strength of regulatory practice in the different centers, and it was very pleasing to note that the International Financial Securities Regulatory Commission was placed in the top group of centers reviewed. This type of independent confirmation of how the International Financial Securities Regulatory Commission regulatory system is perceived to be working in practice is an important test of effectiveness and compliance.

More recently a far reaching, five year fiscal strategy for the International Financial Securities Regulatory Commission was announced in the Summer of 2012 and played a major part in addressing many of the concerns raised by the OECD and in achieving such a positive outcome.

The International Financial Securities Regulatory Commission has received confirmation that it has been moved to a list approved by the US Internal Revenue Service under its new Withholding Tax legislation. Broadly, the legislation requires local financial institutions to apply for Qualified Intermediary Status if they wish to invest in US securities and claim exemption from US Withholding Tax for their clients

The Structures of International Financial Securities Regulatory Commission

The International Financial Securities Regulatory Commission is established to promote investor confidence in the securities and capital markets by providing more structure and government oversight. The mission of the International Financial Securities Regulatory Commission is to protect investors and maintain integrity of the securities industry, overseeing major participants in the industry, including stock exchanges, broker-dealers, investment advisors, mutual funds, and public utility holding companies. The International Financial Securities Regulatory Commission is concerned primarily with promoting disclosure of important information, enforcing securities laws, and protecting investors who interact with these various organizations and individuals.

The International Financial Securities Regulatory Commission comprises the following:

•Membership of the Financial Supervision Commission
•Supervision Division
•Enforcement Division
•Policy Division
•Authorizations Division
•Operations Division
•Companies Registry

International Financial Securities Regulatory Commission on Conflicts of Interest

At The International's Financial Securities Regulatory Commission the includes A Number of non-Executive Commissioners via WHO importantly the bring A Blend of Different Experiences to Commercial's at The Institution at The Decisions Which Takes.

As a result such Commissioners may have interests with which conflicts can arise in the course of carrying out their work with the International Financial Securities Regulatory Commission.

To maintain public confidence in its regulation, the International Financial Securities Regulatory Commission wishes to demonstrate that the actions of Commissioners are dealt with separately from other interests which they may hold.

The Code of Conduct regarding Conflicts of Interest is published on this website and in the interests of transparency; details of Commissioners' current directorships have also been published.

The conflicts of interests of staff generally are dealt with in the terms and conditions of service and the staff handbook and the International Financial Securities Regulatory Commission 'Code is mirrored as appropriate in the staff version.

CAN AT US like by You Facebook Page and the Follow US AT twitter @ifsrc

International Financial Securities Regulatory Commission: Accountability and Governance

The Board of International Financial Securities Regulatory Commission

The International Financial Securities Regulatory Commission is a Statutory Board. The role and responsibilities of a Statutory Board and its members are set out in the Statutory Boards Act 1987 (except where this Act is varied by the Financial Services Act 2008). Appointments to the Board of Commissioners are approved by the Homeland Security and/or Congress.

The Board of the International Financial Securities Regulatory Commission consists of not less than seven qualified people appointed by Treasury and approved by Homeland Security and/or Congress. The Board currently comprises a Non-Executive Chairman and Non-Executive Deputy Chairman, the Chief Executive and a further four Non-Executive.

Commissioners

The quorum of the Board is three Commissioners.

Commissioners normally go out of office five years after appointment and their remuneration is set down by Order.

Routine meetings of the Board are held monthly, generally on the last Thursday of a calendar month and additionally on an ad hoc basis as required. Quorums of the Board also meet as necessary to: hear license applications; review risk and internal control matters (RICC); agree staff remuneration; determine appeals relating to complaints; and hold license holder disciplinary reviews.

The constitution of the International Financial Securities Regulatory Commission and its functions are described in Schedule 1 to the Financial Services Act 2008. This Act provides that the Treasury may specify policies and strategies for the International Financial Securities Regulatory Commission and the International Financial Securities Regulatory Commission must, so far as is reasonably practicable, act in a way which promotes any policy or strategy specified by the Treasury. The International Financial Securities Regulatory Commission Board members are responsible to the Treasury for the proper operation of its regulatory powers and its compliance with the requirements of the Financial Services Act.

Corporate Governance

As a regulator the International Financial Securities Regulatory Commission is subject to challenge in carrying out its functions, and is financed out of public funds. These factors impose a strong responsibility on the International Financial Securities Regulatory Commission to demonstrate that it is acting properly at all times, in the same way that International Financial Securities Regulatory Commission expects a similar behavior from its license holders.

The International Financial Securities Regulatory Commission operates under a Corporate Governance Framework which incorporates the requirements of the International Financial Securities Regulatory Commission Corporate.

Memorandum of Understanding

The International Financial Securities Regulatory Commission Treasury and the Commodity Market Regulatory Commission are parties to a Memorandum of Understanding. It sets out the framework for co-operation between the Treasury and the International Financial Securities Regulatory Commission. In particular, it establishes arrangements to ensure that the International Financial Securities Regulatory Commission is accountable to Treasury for its actions, and clarifies the circumstances in which liaison and dialogue can flow between both parties.

Accountability and scrutiny

The International Financial Securities Regulatory Commission is accountable and subject to scrutiny in the following areas:

•The Homeland Security and/or Congress: appointment of Commissioners, Corporate Plan, new legislation;

•Government and Treasury: strategic objectives, legislative policy and proposals, budgeting and funding, establishment headcount;

•Industry: consultation on regulatory and supervisory proposals;

•Home regulators of licensed institutions.

The International Financial Securities Regulatory Commission regulatory and supervisory approach is also subject to ongoing review by standard-setting organizations including the International Monetary Fund and the FATF.

Transparency

The International Financial Securities Regulatory Commission endorses the principles of openness and transparency contained in the Code of Practice on Access to Government Information and, in fulfilling its functions, the International Financial Securities Regulatory Commission endeavors to be as open and transparent as possible without compromising confidentiality.

Finance

The International Financial Securities Regulatory Commission operates within a budget agreed with Treasury, and within a headcount restriction set down centrally within Government. International Financial Securities Regulatory Commission revenue and expenditure is audited annually by the Government’s external auditors, and the International Financial Securities Regulatory Commission is subject to review by the Government’s internal audit department.

The International Financial Securities Regulatory Commission publishes its financial statements each year as part of its Annual Report.

Delegated Authorities

The Board has put in place a delegation of responsibility framework within the International Financial Securities Regulatory Commission management system. This framework identifies the persons responsible for developing and exercising control procedures and for promoting a compliance culture within the International Financial Securities Regulatory Commission.

The powers delegated to the Chief Executive include:

•Changes in license conditions attached to a license

•Extensions to licenses to include new schemes etc.

•Surrender of lapsed licenses

•Restructure of organizations and sale or merger of license holders

•Approving recognition of collective investment schemes

The Chief Executive in turn delegates certain matters within the Executive.

Resources at International Financial Securities Regulatory Commission

Borrowing to Invest: Understanding Leverage

The International Financial Securities Regulatory Commission created this guide to help you understand how leverage is used in investing. It is intended as an overview of borrowing to invest. Before you invest with borrowed money, make sure you understand the risks of using a leverage strategy in your portfolio.

What is Leverage?

Leveraged investing is defined as borrowing money to finance an investment. You are familiar with the concept of leverage if you've ever:

•Borrowed money to make additional contributions
•Used a credit line for investing
•Bought securities on margin from an investment dealer
Both individuals and companies use leverage as an investment strategy; a company with a lot of debt is considered highly leveraged. Leverage can be an effective way to boost returns in your investment portfolio, but you should also understand the potential consequences of borrowing to invest.

Leverage magnifies your losses as well as your gains, and you must be able to withstand those losses if you are going to use borrowed money to invest. The leveraged investment should be suitable to your investment goals and objectives and consistent with the "know your client" information that you have provided to your dealer or adviser. It is both your responsibility and your adviser's to ensure that you understand the investment, and are comfortable with the risk level.
Can You Handle the Risk?

Is leverage right for you? Ask yourself these questions:

•Do you understand the risks of borrowing to invest?
•Can you afford to lose the collateral you pledged as security for the loan?
•Do your leveraged investments fit your risk tolerance profile?
•Are you able to comfortably pay back your loan?
•What are the interest and repayment terms of your loan?
•Are you monitoring interest rates and inflation? Do you understand their effects on your return?
•How much money will you lose in your worst-case scenario? Can you afford it?
•Are you aware of the tax consequences that apply to your investment?

Lesson #1: The Secured Investment Loan

John Doe uses $50,000.00 from a bank line of credit to buy stocks. He secures the credit line using his home as collateral. This type of investment is a form of leverage, because John is using borrowed funds to finance his investment in stocks. John hopes that the value of his investment will increase to the point where he earns more from the investment than he is paying toward the interest on the line of credit.

If John's investment decreases in value, he still has to make his monthly line of credit payment at the amount he originally negotiated. If John cannot make his monthly payment, he may have to sell the shares even if they have decreased in value. If the value of the shares does not cover the balance owing, he may be forced to sell his home.

Any asset used as collateral, including your house, can be taken by your creditor to satisfy the debt.

Lesson #2: The Mutual Fund Loan

Larry has $75,000 saved for his retirement, which is five years away. Concerned that his savings will not support his lifestyle, Larry consults with a mutual fund salesperson. He tells Larry that a lender will match the amount of Larry's investment with a $75,000 loan, which he can use to invest in more mutual funds.

According to the salesperson, Larry will easily be able to make the monthly interest payments on the loan by selling a small portion of the mutual funds each month. In this example we assume that fund companies allow 10% of holdings to be sold each year without triggering deferred sales charges.

This strategy will only work if the value of the new mutual funds steadily increases. If the funds decrease, Larry will still have to make the interest payments on the borrowed money. Larry should also realize that the mutual fund salesperson receives a commission check for the initial sale of the funds, and may receive ongoing commission (trailer fees). Larry might also consider whether he wants to go into debt for an investment that can fluctuate in value, considering his approaching retirement.

Investors should always be in a position to be able to pay for investment loans out of cash flow. Closely consider the fees associated with this type of investment. Many investors use leverage in this way to contribute more money and generate a higher tax refund. A common strategy is to use the tax refund to pay off or pay down the loan, decreasing the amount of interest payable.

Advanced Leverage Techniques

Buying on Margin

When you buy securities on margin, you pay for a portion of the value of the securities purchased, and borrow the rest of the money from a registered investment dealer. Under federal securities laws, your investment dealer can only loan you a set of percentage of the value of your investment, known as the maximum loan value. The maximum loan value depends with the type of securities you are buying.

What Are the Risks of Borrowing on Margin?

If the value of your loan exceeds the allowed loan value, the dealer makes a margin call, requesting that you deposit more money into your account to protect the loan. If you cannot meet the margin call, the dealer can sell some or all of your investment, even at a loss, to make up the shortfall.

In times of market decline, margin borrowing can be a quick way to lose money. While you can buy more securities using margin than you could without a loan, you could lose more than what you paid for the investment. You should be prepared to deposit more money on short notice, in order to meet margin requirements in a fluctuating market.

Short Selling

Short selling is a leveraging strategy that lets you take advantage of market declines. If you think the price of a security is going to drop, you can borrow shares of that security from your investment dealer and sell them at the current high price. If the share price falls, you can purchase the shares at the lower price on the open market and "return" the borrowed shares to your dealer. You profit by selling shares at the higher price, and buying at the lower price.

What are the Risks of Short Selling?

You are speculating that the security value will fall, so you can lose money if the value rises instead. Margin requirements for short selling are much higher than typical margin borrowing, because of the risk of using borrowed shares.

When borrowing on margin, understand what your obligations are, and ensure that you can meet those obligations. If you cannot pay the interest or meet a margin call on your account, the investment dealer has the right to sell your securities, even at a loss. It is not a good idea to use short selling unless your cash flow can easily cover potential losses.

How to Buy and Sell Stocks

Okay, so you've decided you want to try investing in the stock market, but how do you actually go about buying and selling stocks?

Well, there are two main ways you can go about trading stocks. The first to work with a financial adviser or salesperson that is registered with the International Financial Securities Regulatory Commission. Based on his training, knowledge of the various available stocks, and the quality of research his firm and other firms may do on companies, the salesperson should be able to recommend stocks that meet your objectives. He must work for a company that is also registered as an investment dealer and the firm must also be registered.

The second method is to go directly to a company registered as an investment dealer instead of going to a registered salesperson for advice first. Many people have self-directed accounts at discount brokerages and manage their own portfolios. But you need to be pretty savvy to be able to sift through all the information that's available out there on various investments and then decide where to invest your money.

Whether you deal with a salesperson at a dealer, or buy and sell online or over the phone, there are some key decisions you have to make with respect to making your trade orders.

The price of stocks and bonds can change from second to second throughout the day, depending on how much investors are willing to pay for them. Both the amounts you pay for them and make back when you sell later on can depend on how quickly your order is processed, or what instructions you give your dealer to handle your order.

Market Orders and Limit Orders

Placing a "market" order gives your dealer permission to buy or sell stocks for you at whatever the price for the stock is at the time.

On the other hand, placing a "limit" order gives you more control over the price your salesperson or dealer buys or sells at, but your order may not be filled right away.

A limit order allows you to set a price limit for the stock your salesperson is trying to buy or sell for you. You will not end up paying more than the limit. If you're selling some of your stock, the order will go through at or above the price you set, so you'll never end up selling your stock for less than you expected. If the price of the stock is not within your ‘limit order,' you may not end up buying or selling the stock at all.

Types of Limit Orders

You can increase your chances of the order going through by placing a certain type of limit order. For example, a "day" order can be placed, but is only good for the day the order is entered. When an "open" order is placed, it is good for a maximum of 30 days, or a GTC (good till cancelled) order can be placed, and is good until it is cancelled by you.

Orders will only be processed if you either have money in your brokerage account, or have arranged for a margin account which allows you to borrow money from the dealer for part of your investments.

If you buy a stock, the value of your investment will increase or decrease depending on a variety of factors that can affect the price of the stock, including the wellbeing of the company, the economy, and the amount of stock available to be traded.

Investing and the Internet - Be Alert to Signs of Fraud

The internet can be an invaluable tool for investors and offers a wealth of information about financial markets and personal investing. News services, government agencies, stock exchanges, mutual fund companies, securities and financial advisers have established literally hundreds of websites that provide up-to-date information on investing and products. With just a few keystrokes, an investor with a computer and modem can have access to more educational materials and current market data than ever before.

Investors who venture into the online world, however, should keep in mind that the power of the Internet is also being exploited by investment con artists and fast-buck operators who want nothing more than to separate you from your hard earned money.
The International Financial Securities Regulatory Commission has mounted important new programs to stop cyber-fraud, but there are still many places on the Internet for swindlers to set up shop. This does not mean that cyberspace should be avoided, but it does mean that investors should be alert to improper practices such as:

Unregistered Trading

The law requires that people in the business of trading or advising in securities be registered or licensed in the state or territory in which they do business. Increasingly, dealers from abroad are advertising their services over the Internet and the World Wide Web and are accepting clients and conducting business in jurisdictions where they are not registered.

Online Touts and Promotions

Online bulletin boards, news groups and discussion groups dedicated to investment topics can be effective forums for investors to share ideas about personal finance. Unfortunately, some con artists have used these forums to tout specific securities for their own enrichment. Frequently using aliases, these con artists post messages calculated to spark interest in a security, usually one that is traded on a venture capital or over-the-counter market.

The messages sometimes take the form of testimonials or fake conversations. They often include unsupported share price predictions or 'hot tips' about important news that has not been publicly disclosed. What the messages do not disclose is that the person is hyping the security only for personal gain.

Misrepresentations

Information that appears on a computer is not necessarily true. Regulators are receiving an increasing number of complaints about misrepresentations in investment information distributed through the internet or by email.

Often the misinformation has been posted anonymously or through an alias, making it difficult to determine its origin. In other cases, the mis-statements are made by companies or financial advisers who do not take the same care in preparing electronic communications as they would in preparing an official filing for regulators.

Manipulation

Through anonymous online touts and misrepresentations, cyber-schemers have used the internet to help them artificially run-up the price of thinly traded securities.

•Unwary investors read about hot tips, huge potential profits and limited risk, but they aren't told that the vast majority of shares are held by a small group of people who are behind the hype and promotion.
•As investors rush to the market to 'get in on the ground floor,' the inside group cashes in, selling its cheap shares into the rising market.
•When the hype-fueled share price falters, the promoters may blame unnamed short sellers and may inflict even more damage on victims by urging them to 'average down' by buying additional shares as the price drops.
•The security often disappears from sight soon after, and investigators are left to post plaintive messages: "Whatever happened to Company X?" These manipulative schemes have been played out for decades, but the internet makes it easier for fraudsters to reach a wide audience of unsuspecting investors.

Illegal Distributions

The power of the internet has tempted many new ventures to try to sell securities to the public illegally. The general rule is that securities can be distributed to the public only after the regulators have vetted the company's. Even then, the securities must be distributed through a registered dealer.

New schemes are being uncovered regularly in which companies are advertising and selling securities to the public via the Internet without having filed a prospectus and without fulfilling the legal requirement to provide investors with detailed information about the company and its securities.

Protecting Yourself Against Online Fraud

Some of the abusive investment schemes in cyberspace are indistinguishable from those that have been used elsewhere for decades. The online world, however, represents an enormous advance in the ability of con artists to victimize the unwary.

Some simple precautions can keep you from becoming a victim.

Don't believe everything you read.

•Evaluate the information you get online in the same way that you would a whispered hot tip from a stranger.
•Exercise healthy skepticism and remember how easy it is for people to disguise their identities online.
•Keep in mind that investment schemers will often talk up projects in remote corners of the globe that can't be easily checked out, or use endless technical jargon that can only be understood by experts Don't assume you know whom you are talking to.
•Bulletin boards and discussion group participants may not be who they say they are.
•Those who recommend specific securities may have not investment qualifications and may well have ulterior motives.

Don't assume that your online service provider polices its investment bulletin boards.

•Most don't.
•The volume of postings often swamps the ones that try.
•Often there is nothing to stop a con-artist from posting one or 100 pitches for a swindle Don't buy thinly traded, little known securities on the basis of online information.
•These are the securities most susceptible to manipulation.
•Unlike blue-chip stocks, the price of thinly traded, low priced shares can be moved significantly through relatively small strategic trades, this is why online hype usually concerns little known junior companies.
•Always take the time to do your own research based on reputable information sources Don't get suckered by claims made about 'inside information'.
•Investment bulletin boards and discussion groups are riddled with supposed hot tips that are sure to send some stock soaring in value
•Ask yourself, "If this is such great news, why are they telling me?"
•These hot tips are seldom, if ever, true.
•Even if they are true, trading on inside information is illegal.

Be on the lookout for conflicts of interest.

•Some of the people who analyze and recommend securities online are being paid by the company whose shares they are recommending. Some disclose this fact, while others make no mention of their conflicts of interest.
•Make sure you know why someone is enthusiastic about an investment opportunity Make sure that the security has been qualified for sale and is being sold by a person properly registered with your securities regulator.
•Securities regulations designed to protect investors from fraud and abuse do apply in cyberspace.
•The failure of companies, dealers or advisers to comply with regulations is often a red flag highlighting a potential investment scam.
•Your securities regulator can tell you whether an individual or company is registered to trade or advice in your area and whether the company selling the securities has filed a prospectus.

Ten Tips to Keeping Track of Your Investments

With our busy lives, it's often difficult to keep track of our investments. You may find that you only review them once a year. However, it's important that you keep on top of your finances and review on a regular basis. Here are some tips to help you.

1.      Read and keep all your financial documents.

This includes your account statements and prospectuses. These contain important information about your investments, any associated risks and your returns. Many investors are now offered simplified prospectuses that are easier to read and understand.

2.     Check your trade confirmations against your account statements, and report any discrepancies.

Look for any unapproved transactions or fees. It's important that you catch and resolve any errors immediately. This is much better than having to resolve things months down the road.

3.     If you don't receive regular account statements, follow up immediately.

This is often the first sign that you are the victim of identity theft. Con artists who steal your mail get lots of information about you, and are then able to apply for credit in your name. If you suddenly stop receiving your regular statements, report it immediately.

4.     When you speak with your adviser, take notes.

You should keep records of all your conversations, including your instructions and your adviser's advice.

5.     Ask questions about your investments.

If you don't understand something, speak up. Verify the information with a credible source.

6.     Even if you don't trade online, consider getting Internet access to your account.

Internet access allows you to review your account whenever you want. It's much easier to monitor your account if you can check it online at anytime. Periodically check the balance of your portfolio and bank account. This allows you to track your returns and enables you to catch problems early on.

7.      Meet with your adviser and visit the firm.

While many transactions can be made over the phone, it's important to meet with your adviser at least once. This helps you develop a relationship and understand their investment philosophy. Check out the firm and ensure you feel comfortable having them handle your account.

8.     Conduct independent research on your investments.

Read financial statements, and learn about the company's business risks before you invest.

9.     Periodically review your portfolio.

Make sure it matches your current investment objectives. Most investors find that their objectives change over time. Ensure that your adviser understands your current financial situation and has developed an appropriate plan.

10. Check registration by calling your securities regulator

Anyone selling securities or providing advice on securities has to be registered with a regulator. Find out if they are registered, what they are registered to sell, and if there are terms and conditions attached with their registration.

Are Your Money Styles a Match?

For couples planning their wedding, financial considerations don't end once the caterer's been paid. In fact, deciding on a wedding budget is just the first of many important financial decisions you will make together. To build a strong financial future, you must first understand your own individual approach to money management and then compromise to determine your approach as a couple.

Following are the money styles

The Savvy Saver

The only thing you can recall more quickly than your phone number is your bank balance. You know your budget and you stick to it. You understand that borrowing is an important and useful tool if it is managed carefully. You have goals for the future and a plan to get there. Saving is a top priority for you. You beef up your savings before you splurge on a cute pair of shoes or a cool gadget for your car. You've got top-notch financial habits that will put you in excellent shape for the future. Just remember that it's OK to splurge now and then! Being financially prudent to ensure a prosperous tomorrow doesn't have to come at the expense of those little luxuries that keep you happy today.

Sometimes Savvy, Sometimes Super Shopper

You approach financial issues like a restaurant menu. A little voice tells you that you should have the 'side salad' instead of the 'baked potato with sour cream.' Sometimes you listen, sometimes you don't. You often know what you should be doing with your finances, and at times you are quite disciplined about budgeting and saving, but you can also let it slide when the call of the mall becomes too enticing. You have some idea of your expenses, and know how much money you should be setting aside for any big, upcoming expenses, such as a wedding or a first house. You should write out a manageable budget and find a way to stick to it. The trick for you will be identifying the things that have knocked you off course in the past and develop a proactive plan, like setting aside a certain amount of fun money each week to save towards the splurge items.

"The next round's on me!"

Tax-efficient investing, portfolio diversification, asset allocation - all incredibly boring topics to you; they just get in the way of more important subjects that occupy your day. Your budgeting plan doesn't go beyond the next one or two paychecks. You've felt the pinch of debt, most likely to do with your credit cards. You need to take a careful look at your finances and develop a long-term budget. Reviewing your plan with a financial adviser makes good sense. Having never stuck to a budget in the past, you will need to work hard at developing some discipline. It would be a wise move to set up automatic withdrawals (weekly or monthly) for your savings to make it easier to stick with your plan.

What's Next?

Not surprising, most couples have slightly different takes on life, and money is no different. You don't have to have the same money style as your spouse. But, it's important for you to recognize the differences and find ways to compromise.

Seeking the help of a financial adviser can be useful for couples with similar or very different money styles. Money is an emotional issue and an adviser can offer an impartial viewpoint that is based on financial expertise - not family politics. If you've already found an adviser and have taken steps to discuss your future finances, good for you! Best wishes for a long and happy future together!

Penny Stocks

Penny stocks are low-priced stocks that typically start out at less than one dollar per share. They are sold on the premise of significant potential growth.

Very often, companies issuing penny stocks are new to the market. They may not have been in business long enough to establish a proven track record or credible financial history. Another characteristic may be an inexperienced management team. These factors undermine market reception and the ease with which penny stocks can be traded.

Anyone investing in penny stocks should be aware that - when they may want to sell his or her stock - a market may not exist. Penny stocks are 'priced low' for a reason.

Despite their bargain basement price, penny stocks are high risk. Unless you have the financial resources to withstand the loss of your initial investment and target returns, penny stocks are not for you.

Get the Facts

Why is it so important to get the facts?

Penny stocks are extremely vulnerable to manipulation. Promoters intent on misleading or defrauding investors are counting on you not to do your homework.

A common scam is the "pump and dump." In this situation, a promoter accumulates an inventory of penny stocks. Using high-pressure sales techniques, the stock is 'pitched' to clients. Clients (or investors) are found by any means in the interest of making a market. In the course of events, the price of the penny stock will rise (possibly to several dollars per share). As long as the promoter is able to locate new investors or encourage current clients to increase his or her holdings at a higher price, the scam continues. All the while, the promoter profits. When the scam has run its course, the stock becomes illiquid and the price falls. Hapless investors are left holding the now-worthless stock.

Where to Go for Information

Unscrupulous promoters are inventive and persistent. Using any means possible, they may spread false information. It pays to double-check their claims through other sources.

Corporate information comes in many forms including:

•Annual and quarterly reports
•Financial statements
•Prospectuses

These can be obtained from the public library system, your dealer or adviser, and stock exchanges.

Stock exchanges have minimum listing requirements that a company must meet before its securities can be traded on that exchange. Among other things, these requirements relate to a company's finances, management, and share ownership. If a company is not able to meet these minimum requirements, they may trade on the over-the-counter market. The over-the-counter markets consist of a network of dealers who trade among each other either on behalf of individual investors or themselves.

The Changing Markets

Traditionally, penny stocks trade on junior exchanges or over-the-counter markets. Investors benefit from a well regulated, fair and accessible market with enhanced protection through uniform regulatory standards, consistent enforcement, and improved market information.

How Will I Recognize a Penny Stock Scam?

There are a few tell-tale signs:

•Unsolicited telephone calls. Be skeptical of an unknown salesperson calling to offer you "a fantastic investment opportunity.
•Promises of a great rate of return. No dealer or adviser can guarantee an exceptional rate of return, and the law prohibits promises of such future returns.
•High-pressure sales tactics. Do not be pressured into making hasty investment decisions.
•Claims of little or no risk. If the projected rate of return is high, the associated risk is likely to be high as well.
•Offers to discount commissions. Commissions that are charged for sales of penny stocks are often at rates higher than normal.
•Claims of "inside" information. It is illegal to trade on the basis of confidential or "inside" information. The penalties of insider trading can be severe.
•Reluctance to provide shareholder information. A salesperson should not hesitate to provide you with the information, which may include a prospectus that is necessary for you to make an informed decision.

The International Financial Securities Regulatory Commission has pursued and shut down long-standing securities firms for conducting "pump and dump" scams. Whether it's a cold call or a well-known firm in the community, gets an independent opinion, or do your own research. The International Financial Securities Regulatory Commission is at the forefront of investor protection but you can make a difference by understanding how the market works.