Pa. securities office urges caution

The Pennsylvania Securities Commission today cautioned Pennsylvania investors against making sudden and uninformed decisions amid the market volatility and unprecedented turmoil on Wall Street.

The PSC provided the following tips for investors:

Contact the PSC with any questions about an investment firm, professional or product. Make sure that both the seller and investment are licensed and registered. If they are not, they may be operating illegally.

Use common sense. Some things really are too good to be true. Get a professional, trusted third-party opinion when presented with investment opportunities that seem to offer unusually high returns in comparison to other investment options.

Request written information that fully explains the investment, such as a prospectus or offering circular. The documentation should contain enough clear and accurate information to allow you or your financial adviser to evaluate and verify the particulars of the investment.

If you participate in an employer-sponsored retirement plan, such as a 401(k) plan, get unbiased advice and guidance before making any significant changes to your long-term savings and investment strategy.

The Pennsylvania Securities Commission also reminded investors that the Securities Investor Protection Corporation (SIPC) maintains a special reserve fund authorized by Congress to help investors at failed brokerage firms. SIPC acts either as trustee or works with an independent court-appointed trustee in a brokerage insolvency case to recover funds. Additional information about SIPC is available at http://www.sipc.org.

For more advice on protecting your financial resources from scam artists, visit the Pennsylvania Securities Commission online at http://www.psc.state.pa.us, or call toll-free at 1-800-600-0007 with any questions about investment firms, professionals or products. SOURCE Pennsylvania Securities Commission