The Securities and Exchange Commission has warned Nigerians against patronising fund managers that are not registered with the commission.
According to SEC, in recent times, it has observed the proliferation of the operation of unlawful/unlicensed investment schemes, with promises of huge, but unjustifiable returns on investment
It stated, “These activities are perpetrated by suspected promoters of Ponzi and other fraudulent schemes under the following identities: Loom Nigeria Money, Box Value Trading Company Limited, Now-Now Alert, Flip Cash Investment, Result Investment Nigeria Limited, Helping Hand and Investment and No Failure Development and Empowerment Nig. Limited.
“Others are “MBA Forex and Investment Ltd, Federate Investors Trading Company, Jamalife Helpers Global Ltd, Flexus Global Solutions and Investment Limited, United Capital Investment Company Limited”.
“ Members of the public are to note that by virtue of the provisions of Section 38(1) of the Investments and Securities Act (ISA) 2007, only persons registered with the commission can engage in capital market activities, thus making the actions of these entities listed above unlawful.
“Consequently, the general public is hereby advised to refrain from investing in any scheme of the entities listed above, and warns that any person who invests in an unlicensed/unlawful scheme does so at his own peril. “
The Acting Director-General of the SEC, Ms Mary Uduk, had in a recent statement said such outfits were not registered to carry out fund management functions of any sort, stressing that those who stubbornly patronise them end up burning their fingers.
According to her, the capital market has been properly positioned to attract Nigerians and provide benefits to Nigerians who invest therein.
She added that SEC had sustained its investor education programme to assist people understand whatever issues they had around the capital market.
She said, “Besides that, there are new products coming up every day in the Nigerian capital market.
“We have a lot of ethical funds, one of the safest areas to invest in is in Mutual Funds, Collective Investments Schemes and we encourage Nigerians to be part of these and others.”
The Acting DG said the SEC was undertaking various initiatives to make the capital market more user-friendly such that people could participate in it with greater ease, comfort and convenience.
She added, “There is the added and all-important purpose of ensuring that the gains of your participation, be these dividends, proceeds from share sales/transfers, etc. accrue to you seamlessly, without sweat and in the shortest time possible.
“The purpose is also to ensure that you do not fall victim to the antics of fraudsters who purport to be able to double any amount of money you make available to them as investment value.”
Uduk therefore advised the general public to distance themselves from such schemes.