Public Alert on Unauthorised Investment Activities
The Securities and Exchange Commission (SEC) has issued a public warning against engaging in investment-related transactions with Risevest (Victoria Island) Cooperative Multipurpose Society Limited and Stecs (Alausa) Multipurpose Cooperative Society, popularly known as Stecs. According to the SEC, neither of these entities is registered or authorized to operate within the Nigerian capital market.

Details of the SEC’s Warning
In a circular released over the weekend in Abuja, the Commission drew attention to the unauthorized capital market activities of both cooperatives.

“The attention of the Securities and Exchange Commission has been drawn to the activities of Risevest (Victoria Island) Cooperative Multipurpose Society Limited, which is engaging in capital market activities by inviting the public to invest in its various investment schemes. Similarly, our attention has been drawn to Stecs (Alausa) Multipurpose Cooperative Society (popularly known as Stecs), which is engaging in capital market activities by inviting the public to invest in its Stecs Commodity Mudarabah Investment Series I,” the statement read.

The SEC emphasized that these entities are not authorized to offer investment schemes in the Nigerian capital market. “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 authorized by the Commission.”

Risks of Dealing with Unregistered Entities
The regulatory body highlighted the significant risks associated with investing in unregistered entities, including the potential for fraud and complete loss of investment. The SEC stressed its commitment to protecting investors and combatting illegal or unauthorized capital market activities.

“The SEC remains committed to the protection of investors in the Nigerian capital market and is working diligently to combat the activities of illegal/unregistered entities,” the statement added.

How to Verify Investment Opportunities
To safeguard their investments, the SEC urged the public to verify the registration status of any entity offering investment opportunities. Investors can do so by contacting the Commission directly through its official phone lines, email, or website.

Related Warnings Against Other Unregistered Entities
In a related development, FRONTPAGE reported that the SEC has also cautioned investors against engaging with Marino FX Ltd., which falsely claims to be a cryptocurrency exchange licensed by the SEC.

These warnings underscore the importance of due diligence when exploring investment opportunities and highlight the SEC’s ongoing efforts to protect investors from fraudulent schemes. Investors are advised to be vigilant and seek accurate information before committing their funds to any investment platform.