If someone offers you an investment, you should verify that it is an authorized entity. In our country, anyone offering financial investments must be approved by law, which is an important guarantee for savers. Authorization is granted only if the conditions are met and, once authorized, financial intermediaries are subject to constant supervision.
Control is therefore not particularly difficult: if you have the Internet, you can even directly access the information held by the control authorities; otherwise, you can contact the authorities themselves through traditional means.
Swiss investment fund
- Acquire the necessary information
Information is a prerequisite for a good investment.
Investors should acquire as much knowledge as possible about the products offered, in particular by carefully reading the available documentation.
An important role in this information process is played by authorized intermediaries (and financial advisers), who must:
- provide adequate information, prior to subscription, on the characteristics of the investment and the risks associated with it;
- deliver the contractual documentation and the “risk document”, which aims to provide basic information on the risks associated with the different forms of investment.
- issue, in the case of investment solicitation operations, the prospectus relating to the financial instruments offered.
- Financial promoters must also submit a copy of a declaration from the intermediary on which they depend, containing the identification data of the intermediary and of the promoter, as well as a copy of a document setting out the main rules of conduct that the promoter must respect towards the investors.
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The saver must expect the intermediary to fulfill his information obligations. On the other hand, he must also participate actively in this information process, by providing the intermediary or promoter with information on his own experience and financial situation, the objectives to be achieved and his appetite for risk.
The intermediary has the obligation to request all this information. On the other hand, the investor can also refuse to provide it. However, this refusal may compromise the best provision of the investment service. Indeed, a complete exchange of information will enable the intermediary to better calibrate the investment in relation to the saver's needs and his risk/return profile.
Beware of “improbable” proposals
You get nothing for nothing: beware of investment proposals that guarantee a very high return, not in line with that of the market, or that are “risk-free”. The promise of high returns usually comes with very high risks, and in some cases even attempts at fraud.
Beware of “chain letters”, i.e. proposals promising returns linked to the subsequent joining of others, which often must be convinced by the investor himself to join. These “operations”, in fact, cannot guarantee any return, since they are usually fueled only by the continuity of the members. In other words, as soon as the new subscriptions are no longer sufficient to pay the “interest” of the old subscribers, the initiatives are doomed to failure.
Also beware of vague and general investment proposals that do not explain in detail how the money raised will be used (what types of securities will be purchased, at what prices, on which markets, with which risk profiles – interest rates). interest, exchange rate or counterparty – and if and which hedging instruments will be used to cover these risks).
