The Bermuda Monetary Authority has issued a public warning in relation to an “investment opportunity seminar” at an island hotel this week.

Returns of 18 per cent on a $100,000 investment were described in a “fact sheet” presented at Tuesday’s seminar by a UK-based capital introduction business that invited residents to the event on behalf of its UK-based client, the regulator stated.

The statement added that “according to the information available to the Authority, neither entity is regulated in Bermuda or the UK”.

The BMA said that it’s review of the fact sheet found:

• It was not specifically targeting high-net worth/sophisticated investors

• It lacked a clear disclaimer that it was not an offer to invest or an invitation to subscribe for any investment

• It included references to monthly payments (referred to both as returns and interest), which are based on the amount invested with annual rates as follows: 10 per cent for a $10,000 investment; 12 per cent for a $20,000 investment; 15 per cent for a $50,000 investment; and $18 per cent for a $100,000 investment.

“The Authority advises the public that investments offering returns significantly higher than market averages typically carry higher risk,” the BMA notice adds. “In this case, no risk information was included in the fact sheet or invitation.

It urged the public, before making investments, to consult the BMA website’s list of regulated entities that are licensed or registered to conduct investment business in Bermuda.

“Conducting investment business with unregulated entities carries an increased risk for potential investors, particularly where entities promise unusually high returns without disclosing the associated risks,” the BMA notice states.

“Before committing funds, members of the public should carefully review all offering materials, seek independent professional advice where appropriate, and confirm whether the person or entity promoting the investment is licensed or registered to conduct investment business.”