Quebec's Autorité des marchés financiers (AMF) issued an investor warning about solicitations using multi-level marketing (MLM) principles that, in some cases, may form part of a pyramid scam. The AMF has observed organizations and individuals targeting Québec investors with promises of earnings tied to recruiting new participants, often urging people to solicit friends, family, colleagues, or members of their ethnic or religious community. Promoters are reported to use in-person and online events, including Zoom presentations, and persuasion techniques such as promises of financial freedom or personal growth and success stories that may be false. The AMF cautioned that most of these organizations and promoters are not registered as advisers or dealers under AMF-administered laws, which can expose investors to potentially significant financial losses. The regulator reminded the public that offering investments online, by phone, or in person is regulated, and that anyone promoting an investment product must be registered with the AMF or have a registration exemption. It urged consumers to verify a promoter’s status in the Register of firms and individuals authorized to practise or to contact the AMF Information Centre.
Quebec Autorite des marches financiers 2025-09-23
Quebec's Autorité des marchés financiers warns investors about multi-level marketing solicitations that may be pyramid schemes
Quebec's Autorité des marchés financiers (AMF) issued a warning about solicitations using multi-level marketing principles that may constitute pyramid scams. The AMF noted that these schemes often involve unregistered promoters promising earnings through recruitment, using persuasion techniques and false success stories. The regulator urged investors to verify promoters' registration status to avoid potential financial losses.