SEC Warns Nigerians Against Unregistered Investment Schemes by Risevest and Stecs

 

The Securities and Exchange Commission (SEC) has issued a critical advisory, urging Nigerians to avoid investing in Risevest (Victoria Island) Cooperative Multipurpose Society Limited and Stecs (Alausa) Multipurpose Cooperative Society. These entities, despite their popularity, are not authorized to operate in Nigeria’s capital market.

Unregistered and Unauthorized Activities
In a circular released over the weekend in Abuja, the SEC clarified that neither Risevest nor Stecs is registered under its regulations. The Commission emphasized that these organizations are involved in unapproved investment schemes, posing significant risks to unsuspecting investors.

The SEC has expressed concern about the growing prevalence of fraudulent investment platforms exploiting public trust. According to the Commission’s Sunday press statement, these schemes promise attractive returns to lure investors, often resulting in financial losses when the ventures collapse.

Risks of Investing in Unregulated Schemes
Investing in unregistered entities like Risevest and Stecs carries considerable risks, including:

Lack of Legal Protection: Investors in unauthorized schemes are not protected by Nigerian securities laws.

High Likelihood of Fraud: Unregulated operators may not have the financial backing or transparency to fulfill their promises.

Loss of Funds: The collapse of such schemes often leads to the total loss of investments.


SEC’s Role in Protecting Investors
The SEC serves as the regulatory authority for Nigeria's capital market, ensuring that investment platforms comply with the law to protect investors. The Commission continuously monitors activities in the financial sector and issues warnings to shield Nigerians from fraudulent schemes.

Call to Action
The SEC has urged the public to exercise caution and verify the registration status of any investment company before committing funds. Potential investors are encouraged to visit the SEC’s official website or contact their offices to confirm the legitimacy of investment platforms.


This warning highlights the importance of vigilance in financial decision-making. Nigerians are advised to prioritize safety and transparency in their investment choices, steering clear of unregulated entities like Risevest and Stecs to safeguard their hard-earned money.


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