November 2, 2018

MSC warns Manitobans to avoid Smart investment

 Winnipeg - The Manitoba Securities Commission (MSC) is issuing a warning to Manitobans about and FSM Smart Ltd. – a so-called investment company promising suspiciously high rates or return, and allegedly operating under multiple addresses in four countries outside of Canada.

FSM Smart claims to allow investors to trade in FOREX (foreign exchange market), securities, derivatives, cryptocurrencies, precious metals, and other commodities and shares. They also claim account managers provide advice on transactions. The website avoids making any guarantees on profit, however, complainants to MSC were told they would make up to 20 per cent return on investment per week.

“We have received complaints from Manitobans targeted by FSM Smart, and our investigation turned up numerous red flags and inconsistencies,” says Jason Roy, Senior Investigator with the MSC. “They’re not registered anywhere in Canada; they’re offering to trade in binary options, which are illegal in Canada; and they’re suggesting unrealistically high investment returns—not to mention questions surrounding their actual location.”

The company website lists their physical address as Luzen, Switzerland. Additional addresses are linked to Warsaw, Poland, the Seychelles Islands, and France.

“They also claim they’ve been in business for over a decade,” says Roy, “But some simple investigative work suggests they’ve been around less than one year.”

Following an investigation, MSC has released an Investor Alert naming and FSM Smart Ltd. FSM Smart is not, and has never been, registered to trade securities in Manitoba.

Financial Markets Authority of New Zealand, and Quebec’s L’Autorite des marches Fianciers have also issued recent alerts on FSM Smart.

MSC suggests potential investors follow some basic advice to avoid investment fraud:

  • Start by checking an individual or company’s registration at
  • Research an investment before making a commitment
  • Look for investment fraud red flags such as promises of high returns with low risk, pressure to invest quickly, and inconsistent details
  • Never send money to anyone you only know from an unsolicited phone call or email
  • Never give out sensitive personal information online or over the phone

Members of the public are advised to contact MSC if they believe they have been targeted by any type of investment fraud attempt. MSC’s anti-fraud line is 1-855-FRAUD-MB.

The public can also visit for more information on common investment frauds and scams.

The Manitoba Securities Commission is a division of the Manitoba Financial Services Agency, a Special Operating Agency of the Government of Manitoba that protects investors and promotes fair and efficient capital markets throughout the province.
Media Inquiries:                   
Jason Booth, Communications Coordinator, MSC  |  204.945.1660 |