TheCable

The Securities and Exchange Commission (SEC) says it will continue to work to protect investors and also ensure the promoters of ponzi schemes are made to face the full wrath of the law

Ponzi schemes are prohibited by the provisions of section 38(1) of the Investments and Securities Act (ISA) 2007 which prohibits people who are not registered by the SEC from collecting money from the public.

Mary Uduk, the acting director-general of the SEC, said the commission is stepping up its regulatory oversight to ensure that such illegal entities are sealed off quickly.

“Ponzi schemes are illegal and that is why we keep warning the public about the dangers of these outfits. Even on our website, we have videos enlightening the public on the dangers of Ponzi schemes,” a statement by Efe Ebelo, head of SEC corporate communications department, quoted her to have said.

“Once we have information of anyone engaging in illegal fund management business, our enforcement department working with our police unit shuts them down and the promoters are handed over to the relevant law enforcement agencies for further actions.”

Uduk said the capital market has been properly positioned to attract Nigerians and other investors and provide benefits to those who invest therein.

“There are new products coming up every day in the Nigerian capital market. We have a lot of ethical funds, one of the safest areas to invest in is in mutual funds, collective investments schemes and we encourage Nigerians to be part of these and others,” she explained.

According to the acting DG, the commission is undertaking investment education to ensure that investors and potential investors are properly enlightened.

SEC recently published a list of 12 unlicensed investment schemes which it said could put investors at risk.

They are: Loom Nigeria Money, Box Value Trading Company Ltd, Now-Now Alert, Flip Cash Investment, Result Investment Nigeria Limited, Helping Hand and Investment and No Failure Development and Empowerment Nig. Ltd

Others are MBA Forex and Investment Ltd, Federate Investors Trading Company, Jamalife Helpers Global Ltd, Flexus Global Solutions and Investment Ltd, United Capital Investment Company Limited.

Uduk said the listed outfits are not registered to carry out fund management functions of any sort, stressing that those who stubbornly patronize them would end up burning their fingers.