SEC Cautions Nigerians over Illegal Investment Firms

June 3, 2018
equities Investment Strategy

By Modupe Gbadeyanka

Members of the public have been advised to do proper investigation before entrusting their hard-earned money to any investment firms in the country.

In a statement issued on Friday, the Securities and Exchange Commission (SEC) said before making any investment, professionals should first be consulted for advice.

According to the apex capital market regulator, while it is under a duty to protect investors, a duty which it has continued to discharge, such duty does not include recovering funds for investors who against reason and public notices, invest in products promoted by unregistered/unregulated entities.

It therefore warned the general public to exercise utmost caution and conduct adequate due diligence by checking its website to confirm the registration status of company/individuals marketing any products to them before taking a decision to invest.

SEC said if anyone falls into the den of illegal operators and promoters of ponzi and other fraudulent schemes, the best it can do is to “work with law enforcement agencies to bring promoters of such schemes to book and no more.”

In the statement, SEC said, “Section 38(1) of the Investments and Securities Act, 2007 requires any person who intends to operate as a professional in the capital market or carry on securities business to be registered by the commission before engaging in such activities.

“It is therefore illegal to carry on any kind of capital market business without registration or to patronize such person.”

“In view of the above, the general public is hereby WARNED that any person dealing with any such persons in any capital market/investment related business is doing so at his/her own risk,” the agency stressed.

Modupe Gbadeyanka

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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