Tuesday, July 29, 2008

BVI FSC Issues Advisory Warning Informing the Public on Pyramid Schemes

Last week the second Advisory Warning was published by the BVI FSC, concerning NewNetQuest as a potential pyramid scheme targeting BVI residents. The document reveals general principles of the scheme referred to as a pyramide, and its main point based on the fact that those who have initiated the scheme get benefit, while those in its bottom lose most. It is especially noted that pyramid schemes may be masked as legitimate investment opportunities, offering packages which may be purchased for varying amounts, high investments return, and/or share percentage of net advertising revenue.

BVI FSC made the public aware that it does not regulate such schemes, and has not authorised or endorsed NewNetQuest. Members of the public are advised to exercise extreme caution dealing with NewNetQuest and other similar schemes, and are also invited to provide the Commission with any information on questionable entities operating in or from within the BVI.

The advisory warning, issued under Section 4 (1)(1) of the Financial Services Commission Act, 2001, was published on 25 July 2008 and signed by Robert A. Mathavious, Managing Director/CEO of the Commission.

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