The Securities and Exchange Commission (SEC) has issued a strong warning to the public about investment schemes promoted by Risevest (Victoria Island) Cooperative Multipurpose Society Limited and Stecs (Alausa) Multipurpose Cooperative Society, also known as Stecs. According to the commission, these entities are not registered and have not received approval to operate within Nigeria’s capital market.
In an official circular released over the weekend, the SEC stressed that neither Risevest nor Stecs is recognised as a legitimate capital market operator. It further noted that both organisations have been actively soliciting investments from the public despite lacking the necessary regulatory authorisation.
Risevest and Stecs lack SEC registration
The SEC made it clear that Risevest and Stecs are not officially registered with the commission, meaning they are not legally permitted to engage in capital market activities. The commission explained that any entity looking to operate in the capital market must obtain proper licensing and adhere to regulatory guidelines designed to protect investors.
By operating outside these legal requirements, Risevest and Stecs are engaging in unauthorised activities that could put investors at significant financial risk. The SEC warned that individuals who invest in unregistered schemes do so at their own peril, as such entities are not subject to regulatory oversight.
Concerns over unauthorised investment schemes
The commission revealed that Risevest has been offering various investment opportunities to the public, encouraging individuals to commit their funds to schemes that have not been vetted or approved. Similarly, Stecs has been promoting its Commodity Mudarabah Investment Series I, which also lacks SEC approval.
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These activities have raised concerns, as investment schemes that are not reviewed by regulators may be structured in ways that expose investors to fraud or financial losses. The SEC reiterated that any legitimate investment offering must be approved by the commission to ensure transparency and investor protection.
Public urged to avoid transactions with Risevest and Stecs
Given the risks associated with unregulated investment schemes, the SEC strongly advised the public to refrain from engaging with Risevest and Stecs in any capital market-related transactions. The commission stressed that individuals should verify the regulatory status of any investment firm before committing their funds.
The SEC concluded its warning by urging Nigerians to exercise caution and avoid financial dealings with unregistered entities, as investing in unauthorised schemes could result in significant financial losses with no legal protection or recourse.
