SEC Reaffirms Commitment to Frustrate Ponzi Scheme Operators

By Modupe Gbadeyanka

The acting Director General of the Securities and Exchange Commission (SEC), Ms Mary Uduk, has reaffirmed the commitment of her agency to frustrate operations of illegal fund managers in the country.

Ms Uduk, who spoke at the weekend in Abuja, said the enforcement department of the commission has intensified efforts to close these Ponzi schemes and prosecute the promoters.

Represented by the Head, office of the Chief Economist, Mr Okechukwu Umeano, the acting DG noted that the, “Commission continues to create awareness through various media to educate investors about these schemes and urge people to avoid putting money into them. It is an ill wind that blows no one any good.”

“SEC has introduced a lot of innovative processes to clean up the market and make it easier and safer for investors. Some of these measures and processes include the E-Dividend and Direct Cash Settlement and regularisation of multiple accounts among others.

“Other activities of the SEC such as Risk Based Supervision, encouraging automation, strengthening self-regulatory organizations (SROs) are all geared towards a better market and in turn improved investor confidence,” she added.

Ms Uduk said the agency remains committed to its core mandate of protecting investors and assures the general public that it shall perform this function in line with extant securities legislation.

“We advise prospective investors to cross check properly before patronising any fund manager. Information about registered entities and investment schemes approved by the Commission can be found on the commission’s website, www.sec.gov.ng, or at any of the commission’s offices,” she stated.

The Acting DG expressed the optimism that the market will have a positive year, and thanked the Central Bank of Nigeria (CBN) for its actions in pushing down sovereign yields and helping funds flow to the equities market thereby reducing the crowding out of corporate from the debt market.

“Their actions in the area of foreign exchange management, and how they respond to rising inflation will play a huge role in determining market performance. However, we have confidence in their ability to do what is best for the economy.

“Having said all these, the SEC will continue to do its bit to ensure our market continues to grow. We will keep engaging eligible companies to list, government to ensure that government assets are sold through the market, and removal of the disincentives to investing in the Nigerian capital market.

“The commission remains committed to its core mandate of protecting investors and assures the general public that it shall perform this function in line with extant securities legislation,” she added.