SEC Warns against Investing with Risevest, Stecs Corporative Societies, Companies Reacts
- The Securities and Exchange Commission (SEC) has alerted Nigerians against investment in two investment platforms
- The SEC warned that Risevest Cooperative Society and Stecs Multipurpose Cooperative Society are not authorised platforms by the regulator
- In response, Risevest faulted SEC’s warnings, saying its cooperative activities are registered under the cooperative laws of Lagos state
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Securities and Exchange Commission (SEC) has warned Nigerians against engaging in investment-related transactions with two platforms.
SEC said Risevest Corporative Multipurpose Society and Stecs Multipurpose Cooperative Society, also known as Stecs are not licensed capital market dealers.
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SEC warns against unregistered trading platforms
SEC disclosed on Sunday, January 26, 2025, that the companies are not registered or licensed to operate in the Nigerian capital market.
According to the capital market regulator, the firms engage in capital market activities by inviting the public to invest in various investment schemes.
Also, the SEC said Stec is engaging in capital market-related activities by inviting the investing public to participate in Commodity Mudarabah Series I.
TheCable reports that the SEC said the entities 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,” SEC said.
The regulator said transacting in the Nigerian capital market with unregistered and unregulated entities exposes investors to fraud risks and potential investment loss.
Risevest reacts to SEC’s warnings
However, Risevest responded to the SEC’s warning, explaining the legal standing of its operations.
The company disclosed that Risevest Cooperative Society is registered under the Cooperative Society Laws of Lagos State.
It also said its operations in Nigeria are supported by Meristem Trustees Limited, an SEC-licensed stockbroker, and Chaka Technologies Limited also an SEC-authorised digital sub-broker.
According to Risevest, the structures empower it to manage and invest users’ funds in local and global markets. It has always operated according to the guidelines established by regulators to safeguard consumers.
The firm said it has contacted the SEC to understand the issues raised in the warning and assure all its users that its services are working as usual.
In November 2024, SEC also warned investors not to do business with Marino FX Ltd., which is posing as an SEC-licensed cryptocurrency exchange.
Marino FX Ltd is neither registered nor permitted by the SEC to operate in the Nigerian capital market in any capacity, including cryptocurrency exchange services, the regulator said in a statement posted on the commission website on Wednesday.
The SEC reaffirmed its dedication to protecting investors and maintaining the integrity of the capital market in Nigeria.
FG raises alarm on virus attacks on Nigerians and businesses
Legit.ng earlier reported that the Nigerian government alerted its citizens to the increasing wave of ransomware attacks on businesses and individuals.
The Nigeria Computer and Emergency Response Team (ngCERT) disclosed this on its X handle.
The ngCERT team, which rated the attacks as high and critical, is Nigeria’s Internet police unit under the Office of the National Security Adviser (NSA).
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Source: Legit.ng
