THE Securities and Exchange Commission (SEC) announced that it is collaborating with the National Orientation Agency (NOA) and other regulators to prevent illegal fund managers from operating.
The SEC’s Director General, Lamido Yuguda, stated this in a goodwill message at the National Orientation Agency’s National Fact-Checking Course, which was held in Abuja yesterday.
Yuguda, who was represented by the SEC’s Executive Commissioner for Corporate Services, Ibrahim Boyi, stated that Nigeria’s investment climate has continued to witness the proliferation of illegal fund managers, also known as ponzi schemes, as promoters of these schemes continue to defraud millions of citizens by promising them unbelievable returns on investments.
According to him, “Such schemes, with all the illegality and promises of unrealistic returns, have burnt the fortunes of many ambitious investors, from Yuan Dong Ponzi to Galaxy Transport, Famzhi Interbiz Limited, Cowlane and Durell, and the infamous Mavrodi Mundial Movement (MMM).
“The upsurge of these schemes has undermined the reputation of the capital market and dampened investors’ confidence, among other things. This has created a considerable challenge to the growth of our market, and the commission is striving to change the narrative by instilling a fair, transparent, and orderly market”.
While the SEC, in collaboration with other financial sector regulators, works to crack down on operators of these fraudulent schemes, he believes that investors also have a significant role to play in ensuring that they do not become victims of their activities.
“Investors are advised to always confirm if the investment product, scheme, or company is registered with the SEC before investing. While encouraging more retail investments, we urge you to invest in securities and products approved by the SEC.”
The course, according to the SEC DG, is a timely program that will help combat the scourge of fake news, misinformation, and disinformation.
He asserted that disinformation, misinformation, and fake news are frequently used to stir up hatred, anger, and acrimony, leading to dissatisfaction, division, violence, and even war.
