**There are risks and investment should be cautious. This proverb is familiar to every investor who participates in ** investment. However, in real life, in addition to **, there are many investments that also contain considerable risks. Many people one-sidedly believe that what they invest in is not **, it is a "fixed income" product, and there will be no problems, but in the end, it is difficult to get back the principal.
In the past few years, some criminals and gangs have taken advantage of investors' lack of understanding of financial investment knowledge, deceived customers' trust, engaged in illegal financial behaviors, constructed some investments, and packaged some high-risk underlying assets (or fictitious underlying assets) into pseudo fixed income and non-standard fixed income, which caused many investors to suffer high wealth losses.
Invest**At least you can know why you are losing money and the money you have lost**. However, if you encounter illegal fundraising, there is a high probability that you don't know where the funds will go, how much money you have invested, how much principal you can recover, and when you will get it is "far away". Today, let's take a look at how to identify illegal fundraising** and avoid investment minefields.
1. How to determine whether an investment is illegal fundraising?
According to the Regulations on the Prevention and Disposal of Illegal Fundraising, which came into effect on May 1, 2021, illegal fundraising refers to the failure of the financial management department to obtain permission or violate national financial management regulationsThe act of soliciting funds from unspecified targets by promising to repay principal and interest or giving other investment returns.
Illegal fundraising has two main characteristics:
1. Temptation:Illegal fundraising generally promises to repay principal and interest. Except for products in the nature of bank deposits, the wealth management products of licensed financial institutions (mainly banks, trusts, securities firms and insurance) will not guarantee principal and returns.
According to regulatory requirements, the current large asset management field has basically broken the rigid payment, if someone gives you a package ticket to say that wealth management products are sure to make money and not lose money, you must be vigilant.
2. Sociality:"Attracting funds from unspecified targets". For ordinary investors, it can be simply distinguished, if the investors of the product are composed of many unrelated strangers, it has social characteristics;However, if the company works for a financial exchange between employees, relatives and friends, it does not constitute sociality.
Manifestations of illegal fundraising include:
Establish Internet enterprises, investment and investment consulting enterprises, various trading venues or platforms, professional farmer cooperatives, mutual fund organizations and other organizations to absorb funds;To put it simply, if the subject of your investment and money, that is, the recipient filled in when making a bank transfer, is the company with the above words, you need to be vigilant.
Issuing or transferring equity and creditor's rights, raising funds, selling insurance products, or engaging in various types of asset management, virtual currency, financial leasing business, etcThe entities mentioned in 1 above do not have the qualifications to issue such products, and if such products are issued by such entities, it is likely to be illegal fundraising.
In commercial activities such as the sale of goods, the provision of services, and investment projects, funds are absorbed in the form of promises to pay returns such as money, equity, and in-kind;The promise of guaranteed principal and interest is the most typical feature of fundraising fraudHowever, the new type of fraud does not rule out the promise of income in the form of equity, physical goods, virtual currency, etc.
Violating laws, administrative regulations, or relevant state provisions, publicly disseminating information on the absorption of funds through mass media, instant messaging tools, or other means.
In the current Internet information age, it is necessary to be extra vigilant against fundraising with gimmicks such as the metaverse, virtual currency, and digital collections, which may be manifested in the hype of game production, artificial intelligence, virtual reality and other concepts related to the metaverse, fabricating high-tech investment projects with many packaging names, and publicly falsely advertising high returns to take the opportunity to absorb public funds.
2. How to avoid your investment falling into illegal fundraising?
Trick 1: Refuse blind worship
Do not blindly believe in any institution, even a licensed financial institution such as a bank, trust, brokerage, etc., and do not blindly believe in the products recommended by its staff;Investment is no trivial matter, and it is important not to invest without checking the product contract and figuring out the underlying investment direction of the product.
Before investing, if the final product investment direction is thoroughly verified, for example, the compliant ** contract will clearly state that the funds will be invested in the secondary ** market or bonds, you can understand and judge the risk of product investment according to the fluctuations of the secondary market, and you can judge whether it is in line with your own risk tolerance.
Even the "Zhongzhi system", which holds many financial licenses, and the "Evergrande system", which has trillions of assets, also conduct self-financing through the issuance of fixed financing products by local financial exchanges, which is suspected of constituting illegal crimes and is investigated by the public security organs.
Investment is no trivial matter, refuse to blindly worship and conform to the herd, and cannot look at others' high returns. To put it in one sentence:High yield means high risk, the yield of more than 6% is a question mark, more than 8% is dangerous, and more than 10% is prepared to lose all the principal.
Trick 2: Name recognition
According to Article 9 of the Regulations on the Prevention and Handling of Illegal Fundraising, the market supervision and administration department shall strengthen the management of commercial registration such as the name and business scope of enterprises and individual industrial and commercial households. Except as otherwise provided by laws, administrative regulations and the state, the name and business scope of enterprises and individual industrial and commercial households shall not be included"Finance", "Exchange", "Trading Center", "Wealth Management", "Wealth Management", "Equity Crowdfunding".and other words or content.
At present, the names of banks, brokers, trusts, and ** companies will not contain the above words, so when encountering companies with the above words, especially exchanges, equity crowdfunding, and trading centers, they must be extra cautious.
Trick 3: Only earn money within the scope of your own knowledge
Usually, most of the products of fund-raising fraud are packaged into high-tech, green transformation, rural revitalization and other investment projects with many names, and most of the ordinary investors of such projects do not understand, but they just feel that the product looks "high", and the senior executives have the blessing of "high education", taking advantage of the psychology of ordinary people who do not understand and blindly worship, and are very easy to be deceived.
Therefore, we need to correctly recognize our own investment ability, the so-called "know the wisdom of others, self-knowledge of the knowing", if you can understand the logic of investment, such as how to ensure the safety of the principal, how to generate income, the internal logic can be understood, then you can consider investment. If an investor knows a lot about the market, there is a high probability that the risk of investing in the market of financial products also has a certain understanding, whether it is profit or loss, it has been judged before investing, within the scope of its own cognition, in this case, it belongs to making money within the scope of its own cognition;Even if it is a loss, it is a clear loss.
Trick 4: Calm down and calm down, there is no decision-making power without investigation
In complex investment activities, investments should not be made without due diligence. The so-called due diligence is to have a detailed understanding of the product elements (manager, custodian, investment scope, term, exit arrangement, risk measures, etc.), and to demonstrate through background investigation, even through detailed due diligence, it is only possible to reduce the investment risk (but not eliminate the risk), but can avoid investing in fundraising fraud products.
3. How should investors use professional strength to avoid lightning or improve their own investment level?
If there is a lack of financial knowledge and the ability to identify, it is recommended that investors seek professional advice before investing, such as a neutral third party such as a lawyer or accountant, and the lawyer can judge the transaction structure and investment direction of the product by analyzing legal documents, so as to identify the risk and judge the compliance of the product.
Generally speaking, banks, trusts, securities firms, insurance, and public offerings are subject to strong financial supervision, and the products issued by these institutions are unlikely to involve illegal fundraising, and the funds for the issuance of products are all made upBanks, brokersCustody, so identify the product issuer + custodian entity, which can avoid most of the investment**.
Private placement** has a higher investment experience and risk tolerance for investors, and if they do not have certain financial knowledge, they may have cognitive biases and cannot understand and identify risks wellIf you must invest, it is recommended to obtain professional advice from a lawyer or accountant.
Ordinary investors, except for the products issued by banks, trusts, brokers, insurance, public and private ** managers (with professional opinions), do not touch other products, which can basically avoid 99% of fund-raising fraud products.
Fourth, if you unfortunately encounter illegal fundraising and thunder, how to quickly recover the money?
For the fund-raising institution, the thunderstorm must have been seriously insolvent and unable to operate and pay normally, but as long as it can be cashed and the funds can be turned, the institution will not choose to lie flat on the thunderstorm. Therefore, everyone can feel that as long as there is a thunderstorm, it is the investor who suffers, and it is difficult to recover the investment principal. At this time, what we can do is very limited, we can take the form of reporting to the public security organs, filing a lawsuit in the court, and complaining to the mayor, but it will be a long waiting period and a higher cost of rights protection.
In addition, investors can also actively maintain close communication with the head of the department responsible for disposal and redemption of the fundraising institution to understand the latest redemption and disposal plan and protect their legitimate rights and interests in a timely manner.
Finally, if conditions are met, a lawyer can be hired to assist in handling the case, providing feasible advice based on the actual circumstances of the case, and whether it is necessary to take measures such as pre-litigation property seizure or capital investigation.
This article was first published by Oceanpower Hightrust, a subsidiary of Oceanpower Huifu, and reminded that Oceanpower Huifu and Oceanpower Huifu are not the same entity.