BSP issues practical reminders to protect financial investments
Cebu City (25 May) -- A key pointer to investing wisely is plainly understanding the financial product one is planning to invest in particularly the terms and conditions in fine print, thus reminded the Bangko Sentral ng Pilipinas (BSP).
The BSP issued an advisory on practical reminders to protect one?s financial investments adding that one should never invest in a product one does not understand or any of its terms and conditions.
Do not be enticed by the promise of extremely high returns and one should understand that the higher the return of investments, the higher the risks, the BSP stated.
The advisory also stressed the avoidance of pyramiding investment schemes, including internet-based, that induce investors to recruit others in exchange for more income.
Before planning to make the investment, one should make sure that the actual investment product or instrument, if sold in the Philippines, is registered with the Securities and Exchange Commission (SEC), or has the prior approval of the Insurance Commission in http://www.youtube.com/watch?v=Q3TjGF17_nkthe case of insurance products.
A Certificate of Incorporation from the SEC does not automatically mean that its investment products or instruments are authorized by the SEC.
One must also check the background of the issuing entity and the people behind it. Investment products issued by banks should be authorized by the BSP.
The BSP also advised that one must only deal with solicitors, agents and brokers licensed by the SEC, or with employees authorized by banks if the product is bank-issued.
Investment products or instruments are not insured by the Philippine Deposit Insurance Corporation.
Lastly, investors should keep proof of investments such as official receipts, investment contracts, certificates of participation, among others in a secure place.
Those needing additional information may access the websites of BSP @ www.bsp.gov.ph, SEC @ www.sec.gov.ph, and IC @ www.insurance.gov.ph. (PIA-Cebu/FCR) [top]