By Dipo Olowookere
A fintech company, Crowdyvest, is at loggerheads with the Securities and Exchange Commission (SEC) over a new product designed by the former.
Crowdyvest Victoria Island Multi-purpose Cooperative Society had come up with a product targeted at its members called Halal Fund.
Halal Fund, according to Crowdyvest, was to allow its cooperative society members to invest in a rice sharing project, but SEC in a notice directed the company to suspend it because it was not authorised to embark on such.
The highest regulatory agency for the nation’s capital market issued a cease-and-desist order to Crowdyvest, claiming it was “an unregistered entity purporting to operate as a corporative society.”
It said the organisation must stop the “Halal Fund and any other investment activity which involves soliciting investments and deposits from the public.”
But Crowdyvest disagreed with SEC on this issue, emphasising that its Halal Fund is not targeted at members of the public as alleged by the agency.
In a statement, the company said on May 14, 2021, a notice was sent to SEC to explain its position that the Halal Fund “was strictly for members of its society.”
“We are still awaiting feedback from SEC on our response and are surprised that the commission would publicise its cease-and-desist order and state that we are not a registered entity without proper investigations and confirmation of its power to issue such order to Crowdyvest,” the statement noted.
“Crowdyvest Victoria Island Multi-purpose Cooperative Society is a cooperative society duly registered under the laws of the Federal Republic of Nigeria with registration no: LCSC 16939,” the firm stressed.
“Crowdyvest Cooperative is not a SEC-regulated entity and does not operate any business operations within the purview of SEC. We are a credible organization operating as a cooperative society and in line with the Cooperatives Law of Lagos State,” it further emphasised.
The company urged its members to “be rest assured that we are in discussions with the SEC to clarify our position and will continue to operate within the ambit of the law. All members’ funds are safe and are being utilized as agreed with members and in line with our bye-laws.
“We also promise to carry all our members along should there be any new development with regards to any of our products.”
