The Division of Securities along with the North American Securities Administrators Association (NASAA) released a new list of Top Investor Threats. This year's list has the Jumpstart Our Business Startups Act or "JOBS Act" in mind, the law which eased many of the advertising and marketing restrictions in the securities industry.
The JOBS Act, signed into law by President Obama in April 2012, presents a new challenge to investors who want to make informed decisions about where they invest their hard-earned money. Lifting the ban on many of the advertising restrictions in this industry has created "new and confusing messages," in the words of Keith Woodwell, Director of the Utah Division of Securities.
Three categories of investor threats comprise the 2013 list: persistent investor threats, new threats to small businesses and new threats to investors.
The first category warns against private offerings, high-yield investments, Ponzi schemes, high-risk oil and gas investments, and the like. The list warns small businesses against capital-raising pitfalls and unregulated third-party service providers, both made possible by the recent changes under the JOBS Act. There are also some new threats to investors, proxy trading accounts and digital currency.
Meyer Wilson is dedicated to protecting investors against fraudulent investment practices like the ones described in the 2013 Top Investor Threats list. If you or someone you know has become a victim of securities fraud and suffered substantial financial losses, call an investment fraud attorney at Meyer Wilson today for a free evaluation of your case.