June 1, 2018
By InvestAdvocate
Lagos (INVESTADVOCATE)-The Securities and Exchange Commission (SEC) on Friday warned and alerted the investing public on the activities of illegal operators and promoters of ponzi and other fraudulent schemes.
“The general public is hereby once again advised to beware of illegal operators and promoters of ponzi and other fraudulent schemes. Furthermore, the general public is advised to exercise utmost caution and conduct adequate due diligence, e.g. seeking professional advice and checking the Commission’s website to confirm the registration status of company/individuals marketing any products to them before taking a decision to invest,” SEC said in its official webiste.
According the Commission, while its their duty to protect investors, which it continues to discharge diligently, it is not under their purview to recover funds for investors who against reason and public notices such as this, invest in products promoted by unregistered/unregulated entities, but will only at best work with law enforcement agencies to bring promoters of such schemes to book and no more.
“Please be further advised that while the Commission 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 such as this, invest in products promoted by unregistered/unregulated entities. At best, the Commission will work with law enforcement agencies to bring promoters of such schemes to book and no more,” SEC affirmed.
The Commission 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,” SEC added.
“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 Commission said.
