These are the five things you should know about Ponzi schemes (aka pyramid schemes) to keep you from making a massive investment mistake, according to Magnus Heystek, Managing Director at Brenthurst Wealth Management:
- It promises returns far above average.
- It’s not registered and neither are the advisors.
- It has a complex prospectus — if you don’t understand it don’t do it!
- Advisors make their sales under pressure; offered only to “select clients”.
- Beware of the word “guarantee”. There is a big difference between an “undertaking” and a “guarantee”.