SEC warns against unregistered investment schemes

The Securities and Trade Fee (SEC) has cautioned the investing public towards partaking with quite a few unregistered funding schemes, together with Professional-Vest and My Share, warning that such entities pose a major threat of fraud and monetary loss.

In separate public notices issued on Thursday, the regulator particularly flagged Promiseland Estates Restricted, Promiseland Constructing & Building Restricted, and UYJ Multitrade Restricted, stating that these entities have been working illegally within the Nigerian capital market.

“The Fee hereby notifies the investing public that Promiseland Estates Restricted and Promiseland Constructing & Building Restricted are NOT REGISTERED to function in any capability within the Nigerian Capital Market,” SEC said in one of many notices.

It additional stated that “most people is suggested to chorus from partaking with Promiseland Estates Restricted and Promiseland Constructing & Building Restricted or any of their representatives in respect of any enterprise pertaining or regarding the Nigerian capital market.”

Equally, in a separate assertion, the fee raised issues about My Share, which operates below UYJ Multitrade Restricted. It cautioned that it was not authorised to behave as an funding adviser or fund supervisor.

“The Fee hereby notifies the investing public that MY SHARE and UYJ MULTITRADE LIMITED are NOT REGISTERED to function in any capability within the Nigerian Capital Market,” the assertion learn.

SEC reiterated that transacting with unregistered and unregulated entities within the capital market exposes buyers to fraud and the potential lack of their investments.

It urged the general public to confirm the registration standing of any agency providing funding alternatives by way of the Fee’s on-line portal.

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“The investing public is subsequently reminded about the necessity to affirm the standing of firms and entities providing funding alternatives on the Fee’s devoted portal – www.sec.gov.ng/cmos, earlier than transacting with them,” the regulator stated.

Nigeria’s funding market has been suffering from fraudulent schemes lately, with regulators ceaselessly issuing warnings about illicit operators.

In 2016, the MMM Ponzi scheme collapsed, inflicting thousands and thousands of Nigerians to lose their financial savings.

Related schemes, reminiscent of Loom, MBA Foreign exchange, and Chinmark, have additionally been reported to have defrauded buyers, underscoring the persistent dangers posed by unregulated entities.