Beware of Impostors!

When making financial decisions, a bit of caution can go a long way.

Recently, troubling instances have emerged where impostors have contacted investors, falsely claiming to be Registered Investment Advisors (RIAs). These fraudsters solicited money by presenting fake investment opportunities, only to vanish with the funds, causing distress for victims and damaging the reputation of genuine RIAs. To protect yourself, it is crucial to take the following precautions to ensure you’re dealing with an authentic SEBI Registered Investment Adviser and not an impostor or unregistered individual.

How do fraudsters trick people?

Fraudsters are always finding new ways to deceive people. Common tactics include:

1. Social media scam

- Fraudsters create profiles on platforms like Twitter, Telegram, LinkedIn, Instagram and Facebook

- They post snapshots of fake investment performances and lure investors with unrealistic return promises

2. Direct contact scam

- They reach out to investors via phone, email, or other communication methods, claiming to be RIAs

- They promise high returns and solicit money for investments or fees

What you should do:

Do not Act on tips or investment advice from unknown sources

- Avoid acting on investment tips or advice offered by unknown or suspicious individuals

Do not transfer money

- Never transfer money for investments or fees to unknown individuals. You’re likely to lose any money transferred to fraudsters

Important notices:

- Impersonation and financial fraud aren’t limited to RIAs. Some fraudsters have even posed as SEBI officials to take money from investors

- SEBI, the market regulator, has acknowledged this problem and cautioned investors through a press release (PR No. 16/2021)

- The Reserve Bank of India (RBI) has also published a booklet outlining the modus operandi of financial fraudsters

Always verify the credentials of any financial advisor you choose to work with. Ensure they are registered and recognised by SEBI. Contact GoalTeller for trusted and reliable financial advice from genuine SEBI Registered Investment Advisors

What so SEBI regulations say?

SEBI registration requirement

Anyone offering investment advice to investors must be registered with SEBI as an Investment Adviser. You can verify the registration details of all Investment Advisers on the SEBI website

Investment Advisory Agreement

An Investment Advisory Agreement between the RIA and the client is mandatory. This agreement must be executed before any fee is transferred or any investment advice provided

Mandatory Risk-Profiling

Before offering any advice, the RIA must conduct a risk-profiling exercise with the investor to understand their risk tolerance and investment preferences

Custody and transaction rules

- Custody of money: RIAs are not permitted to take custody of investor money

- Investment advice only: RIAs can advise but cannot transact on behalf of investors

- Power of Attorney: RIAs are not allowed to accept Power of Attorney from investors

Here is what you must do to ensure authenticity of the Investment Adviser:

1. Verify SEBI registration

- Always ensure you’re dealing with a genuine SEBI RIA before transferring any funds or acting on their advice

- Do not engage with unregistered person

- Ask the advisor to share their SEBI registration number

2. Check SEBI website

- SEBI’s website lists details of all registered Investment Advisers. Verify the adviser’s credentials there

- Request the adviser to send you an email or call you from the official email or phone number listed on SEBI’s website

3. Arrange a personal meeting

- Before signing up or transferring any money, arrange a physical meeting or schedule a voice or video call

If you are our client or looking to consult an Investment Advisor:

1. Investment Advisory Agreement

- We will sign an Investment Advisory Agreement with you before asking for any fee payment

2. Risk-Profiling exercise

- We will conduct a risk-profiling exercise before offering any investment advice

3. Service scope

- We provide only financial planning and investment advisory services. We don’t provide stock advisory services or offer paid stock tips/recommendations

4. Funds transfer

- We will never ask you to transfer money to our account to invest on your behalf. SEBI regulations explicitly prohibit any monetary transactions between the investor and RIA except for the advisory fee

5. Fee payment requests

- Fee payment requests will be sent only through the email id mentioned in our agreement. We will not send fee payment requests through social media channels.

Be suspicious if you receive:

Payment requests via social media

-A payment request citing distress on social media platforms. It’s easy to create fake profiles on such platforms

-A fee payment request through social media. We request fee payments only from the official email id listed in the Investment Advisory Agreement

Unreasonable payment requests

-Any payment request that seems unreasonable

Suspicious communication

-A message or email requesting payment where the language and tone seem different from our usual communication style. Be cautious as email addresses can be spoofed!

Important note for UPI transfers

- An impersonator can easily copy our name and photo from the public domain and choose a UPI address that sounds similar. Do not rely solely on the photograph and UPI link for verification

Final words of caution

- It is impossible to cover all grounds of suspicion. Always be careful, and if you have any doubts, please call us directly!

- Staying vigilant is key as fraudsters continually find new ways to trick people

For more information or if unsure about any communication you receive, do not hesitate to contact us directly through verified channels.

- Website: https://goalteller.com/

- Email: support@goalteller.com

- Phone: +91 861-8215374

-SEBI RIA number: INA200015608

-Registered name under SEBI: Finteller Advisors Private Limited

Stay Vigilant and Protect Your Investments with due diligence

Ensure that you are dealing with a genuine SEBI Registered Investment Adviser. Always check their registration details on the SEBI website and follow the guidelines provided. If you have any doubts or encounter suspicious activity, contact SEBI directly. For trusted financial advice and guidance, contact GoalTeller. Our team is here to help you make informed and secure investment decisions!

To know more: Book a call here