I think the Madoff situation is a lesson to all investors about due diligence. It is not just retail investors who got conned here but large companies who should have known better.

If you are looking to invest in the markets, with anyone, then here are some general tips:

1. If it looks to good to be true it is. I was always told 'if it waddles like a duck, quacks like a duck, then chances are it is a duck.

2. Check to see where your 'advisor' makes his money. Is it from commissions or is it from profit share and annual fees. Don't get me wrong if they do either or both it is not particularly wrong, but it will give you an idea of what you are in for (and if you find your account is being traded a lot for no profit, you will know that coms are the main motivation)

3. Whomever the person you are dealing with, be it friend, famous manager, big fund or IFA with a big office, do not be afraid to ask questions, its your money. If they are vague in answering them, pass.

4. If you do not understand the investments that will be made on your behalf, have them explain it to you until you do. If you still do not understand, do't do it.

5. If the 'advisor' will not explain how it makes money because it it is some sort of 'secret' run as fast as you can to the door and do not look back.

These are just five tips, I am sure users can add others...

Good pointers and welcome to the forums.