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Nigeria’s Securities and Alternate Fee (SEC) has mentioned that the upsurge within the actions of unlawful fund managers in current occasions has turn into worrisome.
This was said by the Head, Workplace of the Chief Economist of the SEC, Dr Okey Umeano, throughout an interview in Abuja.
Umeano assured traders that the SEC is working laborious together with different authorities companies to cut back the actions of unlawful fund managers to the barest minimal.
Investor schooling: He restated the Fee’s dedication to proceed to coach and enlighten traders in a bid to make sure they make knowledgeable funding selections. Umeano mentioned:
- “That is an space that we’re doing lots and nonetheless have lots to do. In case you have a look at the Capital Market grasp plan, you will notice that plenty of the issues we wish to do revolves round investor schooling. In investor schooling, what we inform traders is methods to know who’s real and it is extremely easy.
- “Simply go to the sec.gov.ng you possibly can simply on the search portal sort CMO. The search portal comes out and also you sort the identify of the agency advertising and marketing to you if it isn’t there then it isn’t registered with SEC which suggests you aren’t protected. You aren’t coated by that investor safety that I’m speaking about. Those that are advertising and marketing monetary merchandise, funding associated monetary merchandise should come to SEC and be registered”.
Enforcement workout routines: Umeano disclosed that to additional shield traders, the Fee has been finishing up enforcement workout routines towards these unlawful fund managers and would proceed to take action. He mentioned:
- “Now we have been going round closing Ponzi schemes and all these unlawful fund managers and now we have been on completely different stations. I’ve been on a number of TV stations, radio, and in newspapers speaking about this. We’re about to launch a couple of billboards across the nation saying these identical issues. Nigerians should perceive that the cash that they’re giving individuals is troublesome to get.
- “It’s troublesome to lift capital and earlier than you give it to somebody, it is very important know that individual is the fitting individual. This they will simply confirm by happening our web site. That’s the message.”
He said that the Fee has a police Unit that assists in investigating these entities and finishing up enforcement actions when the necessity arises, whereas additionally collaborating with related authorities companies just like the Nigeria Monetary Intelligence Unit and the Financial and Monetary Crimes Fee.
Drawback with Ponzi: Umeano famous that the issue with Ponzi schemes is that they use the cash from Mr A to pay Mr B and use Mr B’s personal to pay Mr C.
- “And whereas they’re paying all that, they’re taking their very own so by the point we shut them, there’s not sufficient cash once more to return to the individuals whose cash they took. You additionally know they promise outrageous returns and these returns are paid to the primary individuals.
- “Now we have a couple of now that we try to resolve however I need to let you know that it’s troublesome for anybody who has put cash in a Ponzi scheme to recuperate a lot. Nigerians should perceive it isn’t good. If anybody guarantees you a return too good to be true, then it’s most likely not true,” he mentioned.
Umeano, subsequently, urged Nigerians to be vigilant and perform their due diligence by visiting the Fee’s web site to determine the registration standing of the entities earlier than investing, including that there’s additionally a necessity for them to know the merchandise they’re investing in to acquire desired returns on their investments
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