The Securities and Exchange Commission has issued a stern warning to the public, advising them to avoid any investment-related transactions with Risevest (Victoria Island) Cooperative Multipurpose Society Limited and Stecs (Alausa) Multipurpose Cooperative Society, also known as Stecs.
In a circular released over the weekend in Abuja, the Commission disclosed that neither of the entities is registered nor authorized to operate in Nigeria’s capital market.
The SEC stated, “The attention of the Securities and Exchange Commission has been drawn to the activities of Risevest (Victoria Island) Cooperative Multipurpose Society Limited, which is engaging in capital market activities by inviting the public to invest in its various investment schemes.
“Similarly, our attention has been drawn to Stecs (Alausa) Multipurpose Cooperative Society (popularly known as Stecs), which is engaging in capital market activities by inviting the public to invest in its Stecs Commodity Mudarabah Investment Series I.”
The Commission made it clear that both entities are not registered or authorized to operate in the Nigerian capital market and that their investment schemes lack SEC’s approval.
“The Commission hereby notifies the public that Risevest (Victoria Island) Cooperative Multipurpose Society Limited and Stecs (Alausa) Multipurpose Cooperative Society are not registered to operate in any capacity in the Nigerian capital market. Similarly, the investment schemes promoted by them have not been authorized by the Commission,” the SEC emphasized.
The SEC warned investors about the risks of interacting with unregulated firms, which can result in fraudulent actions and large financial losses.
“Transacting in the Nigerian capital market with unregistered and unregulated entities exposes investors to the risk of fraud and potential loss of investment,” the Commission stated.
It further assured the public of its commitment to safeguarding investors and tackling the activities of illegal operators.
“The SEC remains committed to the protection of investors in the Nigerian capital market and is working diligently to combat the activities of illegal/unregistered entities,” it added.
The Commission’s announcement underscores the need for potential investors to verify the registration and legitimacy of investment platforms before committing funds.
It also acts as a reminder to market participants to rely on regulated bodies to reduce risks in the financial system.
By avoiding interactions with unauthorised firms such as Risevest and Stecs, investors can protect themselves from potential fraud and guarantee that their investments meet Nigeria’s regulatory requirements.
