Risevest Reaffirms Operational Compliance as SEC Raises Fresh Alarm

By Adedapo Adesanya

Risevest, a digital investment platform, has once again reaffirmed its committment to regulatory transparency and compliance as the Nigerian Securities and Exchange Commission (SEC) raised another red flag about the activities of the firm.

The SEC in another statement on Tuesday notified the public that Risevest Technologies Limited is not registered by it to operate in any capacity in the Nigerian capital market.

“Accordingly, the public is advised to refrain from engaging with Risevest Technologies Limited or any of its representatives in respect of any business pertaining or relating to the Nigerian capital market,” the regulator shared on its X platform.

This follows an earlier caution on Sunday, warning Nigerians against engaging in investment transactions with two unregistered platforms—Risevest Cooperative Multipurpose Society Limited and Stecs Multipurpose Cooperative Society, commonly referred to as Stecs.

SEC warned that engaging with unregistered and unregulated entities in the capital market exposes investors to significant risks, including fraud and the potential loss of funds.

Risevest following the initial warning said it was engaging with the regulator to straighten out the issue.

Now, Risevest in its latest communication, admitted that some of the regulatory frameworks it adopted, particularly for its cooperative subsidiary, needed to evolve to meet the expectations of the commission.

“As we’ve grown, we’ve realized that some of the regulatory frameworks we initially adopted, particularly for our Risevest Cooperative subsidiary, need to evolve to meet the expectations of the SEC. This is a natural part of our journey as we scale, and we are taking additional action steps to close any remaining compliance gaps across all our subsidiaries,” the company said.

The firm reiterated its commitment to supporting the SEC in its efforts to protect investors and ensure innovation aligns with robust investor safeguards.

“We want to reassure you that our investments and operations remain secure and unaffected by this process, as they are delivered through regulated third parties. Your trust is of utmost importance to us, and we see this as an opportunity to raise the bar even higher for compliance and operational excellence,” it added.