Investment seminars

Watch out for investment seminars that promise fast, easy money.

How investment seminars work

Investment seminars can be a useful way to learn about money and investing. But some seminars focus more on selling products or services, rather than providing balanced information. It’s important to understand the difference so you can make informed decisions.

Watch out for seminars that:

• focus only on the benefits and leave out the risks
• provide limited details about qualifications or licences
• focus on a specific investment product, deal or course
• are unclear about costs, fees or commissions
• encourage quick decisions or on-the-spot sign-up
• limit time to review information or seek a second opinion.

Understand the risks

You may be encouraged to make a decision about an investment offer during or straight after a seminar with little time to understand the investment. This can make an offer seem urgent and hard to pass up.

Some offers involve ongoing costs, contracts or financial commitments that continue over time. These may not be clear when you first hear about them.

Once you sign up or pay, it can be difficult to change your mind or get your money back.

Take a moment to slow down and check the details before you do anything.

Salespeople might be unqualified

Some seminars use persuasive speakers to win your trust. They may say they built their own wealth and show you how to do the same to achieve financial success.

But these speakers may be unqualified and unlicensed to provide financial advice.

Before you act on anything they say, check that the person or seminar provider has an Australian financial services (AFS) licence. 

Big promises mean big investment risks

Promises of high returns with little or no risk are a warning sign.

Be careful with seminars that promise:

• risk-free investments
• to make you a millionaire in a few years
• guaranteed or above-average returns
• government-approved investments.

Ask how they expect the investment to deliver those returns.

For example, shares grew in price by about 5% a year over the last decade. Returns grew by closer to 9% a year when dividends were included. If someone promises you returns 1-2% higher than this – or much more – take extra care.

If you’re offered an investment:

• get a second opinion
• ask for a detailed written explanation.

Some seminars promote property deals with rent guarantees or off-the-plan discounts. These offers often include hidden fees and commissions. You may also be asked to pay too much for the property.

Some seminars also promote schemes where you lend money with little or no security. Others push offshore investments, where Australian laws may not protect you. If things go wrong, you may lose your money.

Check the scheme is legal

Check whether the people involved in setting up, marketing or running the scheme:

• appear on ASIC's Professional Registers Search under 'banned and disqualified'
• appear on ACCC's undertakings registers 
• have had action taken against them by your state or territory consumer affairs and protection agency.

A clean result in these checks does not prove the scheme is legal or safe.

Get financial advice before you invest

Never make decisions about money or investments on the spot. Seminar organisers may use pressure and excitement to get you to say yes. 

Get advice from a financial advisor who has no link to the seminar.

If you want to attend seminars, look for trusted providers like the Australian Securities Exchange (ASX) and Service Australia's Financial Information Service.

If a seminar doesn't seem right, or you think a scam has taken your money, report it to ASIC. Warn family and friends so they can avoid the same scam.