Last week, we issued a temporary order against Genius Funds, alleging that the Cyprus-based company had breached various securities laws.
So let’s start with the name of the fund. I believe it was chosen to convince investors that these funds are special because the word genius means a person or body of work of surpassing excellence. A work of genius, when it truly is genius, will fundamentally alter the expectations of its audience. However, in this case, Genius Funds is offering returns to investors that go beyond surpassing excellence – in my view they are impossible to achieve.
If you can believe it (and I hope you don’t) Genius Funds is offering payments of up to 1.9 percent daily on one fund and up to nine percent weekly on a second fund. Remember the old adage if it is too good to be true…
There are social media websites where people are promoting Genius Funds. Additionally, Genius Funds advertisements appear in online classified ads in different Canadian provinces.
With the temporary order, Genius Funds cannot engage in any investor activities in the province. Nor can it trade in any securities in BC.
So spread the word. Tell your friends. Do not send any money to Genius Funds.
To read previous posts on this and other topics, click on Let’s talk about investing
With the Registered Retirement Savings Plan (RRSP) deadline approaching, it is a good idea to familiarize yourself with the Canadian Securities Administrators’ (CSA) Fund Facts Interactive Tool. This tool allows you to better understand the mutual funds that you are considering purchasing as an RRSP contribution. The CSA has published a sample Fund Facts document […]