SEC warns Nigerians against investing in unregistered online platforms

The Securities and Exchange Commission (SEC) has warned Nigerians engaging in investment against the proliferation of unregistered online investment and trading platforms facilitating access to trading in securities listed in foreign markets.

SEC issued the warning in a circular dated April 8 and addressed to Capital Market Operators by the management of the commission in Abuja, the nation’s capital.

“The attention of the SEC has been drawn to the existence of several providers of online investment and trading platforms which purportedly facilitate direct access of the investing public in the Federal Republic of Nigeria to securities of foreign companies listed on Securities Exchanges registered in other jurisdictions.

“These platforms also claim to be operating in partnership with Capital Market operators (CMOs) registered with the Commission,” the statement said.

According to SEC, by the provisions of Sections 67-70 of the Investments and Securities Act (ISA), 2007 and Rules 414 & 415 of the SEC Rules and Regulations, only foreign securities listed on any exchange registered in Nigeria may be issued, sold, or offered for sale or subscription to the Nigerian public.

It, therefore, informed the capital market operators who work in concert with the referenced online platforms of the commission’s position and advised them to desist henceforth.

“The Commission enjoins the investing public to seek clarification as may be required via its established channels of communication on investment products advertised through conventional or online mediums,” the statement added.

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