The Securities and Exchange Commission (SEC) has issued a stern warning to Nigerians against engaging with Risevest Technologies Limited, a firm that presents itself as a Digital Dollar/Fund Manager in the Nigerian capital market.
In a public notice released by the Commission on Tuesday, SEC declared that Risevest is not registered to operate in any capacity within the country’s regulated capital market.
The public notice read, “The attention of the Securities and Exchange Commission (“The Commission”) has been drawn to the activities of Risevest Technologies Limited, which holds itself out as a Digital Dollar/Fund Manager in the Nigerian Capital Market.
“The Commission hereby notifies the public that Risevest Technologies Limited is NOT Registered by it to operate in any capacity in the Nigerian Capital Market.
“Accordingly, the public is advised to refrain from engaging with Risevest Technologies Limited or any of its representatives in respect of any business pertaining or relating to the Nigerian capital market.”
Risk of fraud
According to the regulatory body, the firm’s activities pose significant risks to investors, as transacting with unregistered and unregulated entities increases the likelihood of fraud and financial losses.
The Commission has advised the public to exercise caution and verify the regulatory status of companies before making investment decisions.
SEC emphasized that dealing with unapproved investment platforms could result in serious financial risks, reiterating that its role as the apex regulatory body in the capital market is to protect investors and ensure the credibility of investment platforms.
The Public is advised to verify companies before investing
The Commission urged Nigerians to always confirm the regulatory status of investment firms via its dedicated portal (www.sec.gov.ng/cmos) before engaging in any financial transactions. This verification process, SEC insists, is crucial to safeguarding funds and avoiding fraudulent schemes disguised as legitimate investment opportunities.
“The Commission uses this medium to reiterate that transacting in the Nigerian Capital Market with unregistered and unregulated entities exposes investors to the risk of fraud and potential loss of investment.
“The investing public is therefore reminded about the need to confirm the status of companies and entities offering investment opportunities on the Commission’s dedicated portal – www.sec.gov.ng/cmos, before transacting with them,” SEC stated.
The latest SEC advisory comes amidst growing concerns over online investment schemes promising high returns, with many unsuspecting Nigerians falling victim to fraudulent platforms that operate without regulatory oversight.
Recently, Risevest has repeatedly promoted its services on radio, billboards, and social media, encouraging Nigerians to invest in the platform.
(Nairametrics)
