The Securities and Exchange Commission (SEC) has warned Nigerians not to invest in two organizations: Risevest (Victoria Island) Cooperative Multipurpose Society Limited and Stecs (Alausa) Multipurpose Cooperative Society. These entities are accused of operating unauthorized investment schemes in Nigeria.
Details of the Warning
In a recent circular from the SEC in Abuja, it was made clear that neither Risevest nor Stecs is registered or authorized to operate in Nigeria’s capital market. This means their activities are illegal and unregulated.
In the words of the SEC, ““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. “
The SEC emphasized that neither of these organizations has the authority to operate in Nigeria’s capital market. Therefore, their investment schemes have not been reviewed or approved by the Commission.
“The Commission hereby notifies the public that Risevest (Victoria Island) Cooperative Multipurpose Society Limited and Stecs (Alausa) 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.
“Accordingly, the SEC advised the public to refrain from engaging with Risevest (Victoria Island) Cooperative Multipurpose Society Limited and Stecs (Alausa) Multipurpose Cooperative Society in respect of any business pertaining or relating to the Nigerian capital market.”
The SEC also warned that engaging with unregistered entities like Risevest and Stecs exposes investors to fraud and significant financial risks, including the loss of funds. They urged Nigerians to avoid doing business with them.
To protect investors, the SEC advised the public to verify the registration status of any investment platform through its official channels. This is to ensure transparency and safeguard funds. Then, the SEC reassured Nigerians of its dedication to protecting investors and promoting transparency in the capital market. It also emphasized that it will act against illegal and unregistered operators.
What You Should Know
Risevest claims to be a tech company offering financial services to Nigerian residents. However, its investment products are managed by affiliates and third-party partners registered in Delaware, USA, not under Nigerian regulation.
Despite SEC’s warning, Risevest has intensified advertising across platforms like radio, billboards, and social media, encouraging Nigerians to invest with them.
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