Ten tips to stay in the clear when making financial investments

1. Anyone who phones or e-mails to sell you stock is acting illegally. In the Republic, investment managers, intermediaries and stockbrokers may not contact potential customers without first obtaining their permission. This also applies to legitimate, Central Bank-authorised firms.

2. Anyone marketing investment services must be registered with the Central Bank. Do not provide callers with any personal/financial details or money until you check their authorisation with the Bank at lo-call number: 1890 200 469.

3. Investment advisers must ensure that investors are sold products that are fit and proper for the person's individual situation. You should be wary of anyone attempting to sell investment products without first determining your overall financial picture. Consumers should request a company's "code of business", a document that sets out such standards and is approved by the Central Bank.

4. In the case of fraud, investors are not entitled to claim compensation from the Investor Compensation Company Ltd (ICCL) fund unless the firm in question is authorised by one of the numerous regulators or industry bodies.

5. Investment discussions should always include details of the risks involved. The stock market is a gamble and there is no such thing as a sure bet. If it sounds too good to be true it probably is.

6. Paperwork is part of any legal transaction between investors and stockbrokers. If this element is missing, consumers should be concerned about the legitimacy of the transaction.

7. Never write a cheque out to an individual. Use the company name instead.

8. Inquire about the "cooling off" period during which you may back out, and the exact breakdown of the broker's or investment manager's fees.

9. High pressure sales tactics are a tip off that the individual may not be legitimate. Catch-phrases such as "inside information" "exclusive deal" or "double your investment" probably indicate a risky investment or a scam.

10. Always do your own research. Even legitimate brokers and salespeople are hired to sell a product and make commission. Therefore, it is important that consumers always check a stock's profile themselves.

The following websites allow investors to check quotes and such as www.bloomberg.com, www.ragingbull.com, www.hoovers.com and www.individualinvestor.com allow investors to check quotes and the latest news on many publicly-listed companies.