• Too good to be true

    The Australian Securities and Investments Commission (ASIC) - the consumer protection regulator for financial services - has a 'FIDO' website that provides warnings about known dubious investments and advice on how to identify them. ASIC has four key tips for tax professionals about investment schemes.

    Tips for tax professionals

    ASIC recommends you take these steps to determine whether a scheme is operating legally.

    1. Search ASIC's FIDO database to find out whether the company managing the scheme investment has an Australian Financial Services license.
    2. Search the FIDO database to see if the scheme is registered with ASIC.
    3. Check FIDO's list of illegal investments.
    4. Ask the seller for their product disclosure statement, which all schemes are required to have.

    You can find more information at www.fido.gov.au

      Last modified: 28 Jan 2010QC 28245