SEC warns on proliferation of unregistered online investment platforms

The Securities and Exchange Commission (SEC) has warned the public on the proliferation of unregistered online investment and trading platforms facilitating access to securities trading in foreign markets. This is contained in a circular to the Capital Market Operators (CMOs) issued by the management of the commission made available to the News Agency of Nigeria (NAN) in Abuja on Thursday.

“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 CMOs registered with the Commission,” it said.

The Commission stated that by the provisions of Sections 67 to 70 of the Investments and Securities Act (ISA), 2007 and Rules 414 and 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.

Accordingly, the commission notified the CMOs 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” it added. (NAN)