Securities

CONSUMER INFORMATION

Frequently Asked Questions

How are investment advisers paid for their services?
Generally speaking, investment advisers may be compensated for their services in a number of different ways. Compensation methods can include payment based upon a set percentage of the assets managed, a flat hourly fee, a fixed fee; or a combination of these. Before choosing an investment adviser, always request a written copy of the method of payment utilized by the investment adviser. This information is required to be outlined on Part 2 of Form ADV and is commonly referred to as the “brochure.” Investment advisers are required by law to provide this information to consumers.

How can I learn about whether an investment adviser has had problems with government regulators or been disciplined?
Information Concerning The Background And Registration Status Of Investment Advisers

This information is provided from data maintained on the Investment Adviser Registration Depository. The U.S. Securities and Exchange Commission maintains a website called “Investment Adviser Public Disclosure”, or IAPD for short. The IAPD website provides an on-line look at the Form ADV for each investment adviser. Form ADV is the common application form submitted by all investment advisers which discloses information concerning the adviser’s ownership, states in which it is registered, the amount of assets under management, disciplinary information, and other detailed information for each investment adviser.

Obtain a copy of a Central Registration Depository (CRD) report concerning an investment adviser representative directly from the Illinois Securities Department. The report provides information concerning the investment adviser representative’s employment history, securities examinations the representative has passed, licensing or registration status in Illinois or other applicable states and disciplinary history. To obtain a copy, call the Securities Department at 800-628-7937, or email your request to one of our investment advisory specialists at: lbednarko@ilsos.net. When requesting information about an individual, please be sure to include the individual’s first and last name, the name of the investment adviser firm where the individual is employed, and address where the individual conducts business.

Please include your fax number or postal address for mailing of the requested report.

Who needs to be registered as an investment adviser?
Persons with more than five (5) clients who offer investment advice to consumers or who supervise or manage assets, in exchange for compensation need to be registered in Illinois.

Where can I file a complaint regarding unsuitable investment advice that was given to my parents?
Information For Consumers To File A Complaint Online With The Illinois Securities Department

I’m an elderly investor and I attended a free luncheon investment seminar and the main presenter said that he was a “senior specialist” regarding investments. Is it safe to take investment advice from someone with this kind of title?
No. The Illinois law and administrative rules that regulate providing investment advice are very explicit regarding what qualifications an individual must possess to legally qualify as eligible to provide investment advice. If this persons’ only qualification is as a purported “senior specialist”, that is not an accepted basis for legally providing investment advice in Illinois. Please call the Securities Department at 800-628-7937, or contact an investment advisory specialist at: lbednarko@ilsos.net for more information.

A friend approached me about investing $10,000 in an “autosurf” investment program she’s started. She said I can double my money in a short time by just being on the Internet and clicking on the advertisements that appear. Is this legal?
Bogus autosurf investment schemes are modern versions of the Ponzi schemes used to defraud many investors. These fraudulent investment offerings violate both Illinois and federal securities laws. If someone offering such an “opportunity” approaches you, please contact the Illinois Securities Department toll-free at 800-628-7937 (speak Spanish 888-231-1175).

My insurance salesperson says that buying an annuity would be a good move for me for retirement. I don’t know much about them. Are they a good investment?
An annuity is an insurance related product under which the insurance company agrees to make regular payments to you either at some date starting in the future, or immediately. There are different types of annuities, such as deferred, variable or equity indexed annuities. Each type of annuity has differences concerning fees and charges, limits on withdrawal of invested funds and payment levels. As with any investment, before making a decision to invest you first have to do some homework to determine if this type of investment is appropriate to your own personal situation.

Additional Information - Investment Choices | Variable Annuities: What You Should Know

DISCLAIMER
The Secretary of State, Illinois Securities Department or their information providers shall not be liable regardless of the cause or duration, for any errors, inaccuracies, omissions or untimeliness of the information, or for any delay or interruption in the transmission thereof to the user, or for any claims or losses arising therefrom.