The Securities and Exchange Commission (SEC) Nigeria has restated its commitment to continuously educate and enlighten investors as part of its sustained efforts to guide them on right investment decisions.
The commission’s Head, Office of the Chief Economist of the SEC, Dr. Okey Umeano, who made this promise during an interview, noted that the rising spate of illegal fund managers in recent times had been a source of concern to the commission and assured investors that the SEC was working in collaboration with other agencies to reduce the scam to the barest minimum.
He explained: “This is an area that we are doing a lot and still have a lot to do. If you look at the Capital Market master plan, you will see that a lot of the things we want to do revolves around investor education. In investor education, what we tell investors is how to know who is genuine and it is very simple.”
He spoke on processes investors should take by exploring the information provided on the SEC website to avoid being defrauded by the illegal fund managers parading themselves as legitimate players in the capital market.
Umeano further spoke on sundry initiatives of the commission aimed at protecting investors from scammers, including enforcement exercises against these illegal fund managers and would continue to do so.
He clarified: “We have been going around closing Ponzi schemes and all those illegal fund managers and you know we have been on different stations. I personally have been on several TV stations, radio, and newspaper talking about this. We are about to launch a few billboards around the country saying these same things. Nigerians must understand that the money that they are giving people it is difficult to get.
“It is difficult to raise capital and before you give it to someone, it is important to know that person is the right person. This they can easily ascertain by going on our website. That is the message”, the investment expert added.
According to him, currently the Commission has a Police Unit that assists in investigating Ponzi scheme promoters and carrying out enforcement actions when the need arises and also collaborating with relevant government agencies like the Nigeria Financial Intelligence Unit and the Economic and Financial Crimes Commission.
While noting that the problem of Ponzi schemes is that the promoters manipulate in order to dupe investors, Umeano urged Nigerians to be vigilant and carry out their due diligence by visiting the Commission’s website to ascertain registration status of any firm before investing their funds in it.
