By Aduragbemi Omiyale
The Securities and Exchange Commission (SEC) said it was increasing its efforts to attract more Nigerians to the capital market.
While it is doing this, on the one hand, it is also, on the other hand sanitising the space of fraudulent fund managers, who offer investors mouth-watery returns.
Speaking when a team from the Central Bank of The Gambia was on a study visit to the commission’s office in Lagos recently, the Executive Commissioner Operations of SEC, Mr Dayo Obisan, stated that the investing public is being enlightened on the strategies to differentiate the genuine investments from the fake.
Mr Obisan said Ponzi schemes, which cut across countries, were giving regulators sleepless nights, assuring that the agency was ready to share knowledge with its Gambian counterpart on ways to effectively address the menace.
He also promised that the organisation would offer the necessary assistance in the country’s desire to develop more products in its bid to deepen its capital market.
According to him, SEC has put in place some measures to reduce the activities of illegal fund managers in the country.
“Just as you may have it in the Gambia, we also have our share of battles with Ponzi schemes, people trying to defraud others of their hard-earned money. They are everywhere.
“And this always happens when there is despair or lack of hope, it does not mean one nation is worse than the other. But the reason why we are regulators or an upholder of the law is to deter and minimise it. Here in Nigeria, we are working hard to ensure that they are not allowed to thrive,” he stated.
Mr Obisan told the Gambian visitors that the promoters of these unscrupulous schemes pose as operators in the capital market to defraud investors of their money with mouth-watering promises of return on investments.
“This has made it difficult for investors to differentiate between genuine and false investment opportunities. The activities of these Ponzi scheme promoters have posed a huge challenge to the commission. In combating them, we are working in collaboration with other agencies to nip their activities in the bud.
“Also, the commission is working tirelessly to ensure investors are aware of these nefarious activities through investor education programmes.
“We urge the Nigerians to partner with us in the fight against Ponzi schemes by reporting to the SEC anytime such activities are noticed,” he stated.
Mr Obisan disclosed that the capital market has a lot of products that appeal to all ages of people, adding, “we also organise outreaches that afford Nigerians the opportunity to learn how to invest in the Nigerian capital market, including Collective Investment Schemes being managed by professionals in addition to exposing participants to the activities of Ponzi schemes and how to identify them.
The Executive Commissioner disclosed that the SEC has a dual mandate to regulate and develop the Nigerian capital market that is fair and orderly and engenders investor confidence adding that a key aspect of the SEC’s market development role is enlightenment and investor education.
