The Securities and Exchange Commission (SEC) has issued a stern warning to the public, cautioning against engaging with Risevest (Victoria Island) Cooperative Multipurpose Society Limited and Stecs (Alausa) Multipurpose Cooperative Society. The Commission revealed that both entities, along with their investment schemes, are neither registered nor authorised to operate in Nigeria’s capital market.
According to a circular released in Abuja, the SEC flagged the activities of these organisations, stating that they have been soliciting investments from the public under the guise of operating legitimate capital market schemes. Specifically, the SEC highlighted Risevest’s various investment offers and Stecs’ Commodity Mudarabah Investment Series I as examples of unauthorised operations.
The regulatory body stressed the risks posed by engaging with unregistered entities, warning investors of potential fraud and the loss of funds. “The Commission hereby notifies the public that Risevest (Victoria Island) Cooperative Multipurpose Society Limited and Stecs Multipurpose Cooperative Society are not registered to operate in any capacity in the Nigerian capital market. Similarly, the investment schemes promoted by them have not been authorised by the Commission,” the SEC noted.
This warning comes as part of the Commission’s broader efforts to safeguard the integrity of the financial market and protect investors. The SEC has reiterated the importance of verifying the registration status of any entity offering investment opportunities. It encouraged the public to utilise its official communication channels, including phone lines, email, and its website, for such verifications.
The regulatory authority reaffirmed its commitment to combating illegal and unregistered financial activities while urging Nigerians to exercise caution when approached with investment opportunities.
This is not the first time the SEC has raised concerns about unauthorised entities. In a recent report, the Commission flagged Marino FX Ltd., a company falsely claiming to be a licensed cryptocurrency exchange.
Investors are advised to remain vigilant and seek professional advice before engaging in any investment transactions.
