SEC Restates Commitment to the Protection of Investors
By Goddy Egene
The Securities and Exchange Commission (SEC) has restated its determination to protect investors in the nation’s capital market. The capital market regulator stated amidst the return of wonder banks.
An official of SEC told THISDAY on Wednesday that the commission is aware of the gradual return of some wonders banks that are luring some gullible investors into parting with their money instead of investing in registered schemes or through licensed market operators.
“One of the major functions of SEC is investor protection and the commission is highly committed to doing this and has put necessary strategies in place to ensure investors are protected in the market. We are aware of the losses investors have suffered in the past and we are doing everything to avoid its repeat,” the official said.
Following the emergence of a wonder bank, MMM Federal Republic of Nigeria, some stakeholders called on the SEC to collaborate with law enforcement agencies and other relevant bodies to stop the activities of online fraudsters who float unregistered funds to defraud investors.
Although SEC had warned the investing public to stay away from against the MMM but the operators of the fund are still calling on unsuspecting investors for patronage. However, an investor, Mr. Moses Igbrude of Independent Shareholders Association of Nigeria (ISAN) told THISDAY that SEC should work with law enforcement agencies and the Nigerian Communication Commission (NCC) and track those behind the fund and bring them to book before gullible investor fall victim.
“It is a good thing SEC has alerted members of the investing public to stay away from the illegal fund managers but some gullible investors can still be attracted by the unrealistic return they are being promised. At the end of the day, the regulators will still get the blame. I therefore think SEC should work with other organisations, track down those behind the MMM and bring them to book,” Igbrude said.
Apart from SEC that has advised investors against patronising Ponzi schemes, the Managing Director Nigeria Deposit Insurance Corporation (NDIC), Alhaji Umaru Ibrahim last week also warned members of the public against patronising dubious fund managers in view of mouthwatering interest rates and unattainable returns they promise their victims.
The NDIC boss said that despite repeated warnings, many unsuspecting and financially naïve members of the public have continued to patronise these dubious fund managers in view of mouthwatering interest returns.