SEC issues warning to Nigerians about investing in Risevest and Stecs
The Securities and Exchange Commission (SEC) has released a cautionary statement to the general public about investing with Risevest (Victoria Island) Cooperative Multipurpose Society Limited and Stecs (Alausa) Multipurpose Cooperative Society, known as Stecs, declaring that these entities lack registration with the commission.
SEC emphasized that Risevest and Stecs do not have legal recognition from the SEC and have not been granted the necessary approval for their investment activities that they promote. The commission elaborated on its awareness of Risevest’s promotion of various investment schemes and Stecs’ encouragement of the public to invest in its Commodity Mudarabah Investment Series I.
Highlighting the gravity of the situation, SEC reiterated its warning to the public against engaging in any investment transactions with Risevest and Stecs due to their lack of approval and registration within the Nigerian capital market. The commission emphasized that these entities are not recognized by the SEC for conducting investment-related transactions and advised the public to exercise caution.
Citing unapproved capital market activities by Risevest and Stecs, SEC explicitly advised against any involvement with these cooperative societies in matters relating to the Nigerian capital market. It underlined its responsibility to safeguard the interests of investors by providing adequate information and issuing cautions regarding unregistered entities operating in the capital market to prevent potential financial losses.
SEC emphasized its commitment to monitoring and regulating the market to protect investors from unauthorized activities and scams that may jeopardize their financial security. By alerting the public to the unauthorized status of Risevest and Stecs, the commission sought to prevent unsuspecting individuals from falling prey to fraudulent investment schemes that lack the required regulatory oversight and legal compliance.
In their circular, SEC clarified that Risevest (Victoria Island) Cooperative Multipurpose Society Limited and Stecs (Alausa) Multipurpose Cooperative Society operate without the necessary registration or authorization to conduct investment-related business activities in the Nigerian capital market. The commission reiterated its official stance against engaging in investment transactions with these entities to prevent potential financial risks and protect the investing public.
Ultimately, SEC’s vigilance and proactive warnings regarding unregistered entities like Risevest and Stecs underscore the importance of due diligence and cautious decision-making when considering investments to safeguard against fraudulent activities and potential losses in the capital market.
