Firm Seeks Approval for Crowdfunding Platform After SEC Warned Nigerians Against Investing With It
- The firm behind the illicit Provest investment scheme has applied for SEC approval to float a crowdfunding platform
- This was one of the companies the SEC recently warned Nigerians against investing with
- Provest has promised that the funds gotten from its crowdfunding platform will be spent transparently
Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
The Securities and Exchange Commission (SEC) has received a crowdfunding approval application from one of the firms recently blacklisted for investments.
The firm – Promiseland Building and Construction Limited – in its application to SEC, disclosed its intention to establish and manage a crowdfunding platform in Nigeria.
The letter, which was signed by the Chief Executive Officer and Chairman Lawrence Emmanuel, explained that the crowdfund platform would provide capital for real estate projects, construction-related investments and other infrastructural projects the company wants to undertake.
Source: Getty Images
SEC blacklists Provest, four others
Recall that the Securities and Exchange Commission (SEC) recently released a blacklist of companies that Nigerians must not invest with.
The SEC stated that these companies are not licensed or approved to operate as investment firms.
This list included Promiseland Estates Limited and Promiseland Building & Construction Limited, which were alleged to be floating an illegal investment vehicle.
Now, the company wants SEC approval to allow it to operate as a crowdfunding intermediary and has reiterated its readiness to comply with the regulator's guidelines on crowdfunding.
Promiseland has also promised transparency and dedication to protecting investors on its crowdfunding platform, the PUNCH reports.
The company attached to the application the relevant documents, including details of management personnel, Certificate of Incorporation, audited financial statements, business profile, bank statements and evidence of payment.
The statement also expressed readiness to provide further information to the regulator as the need arises.
SEC warns Nigerians not to invest with RiseVest
Recall that the SEC also issued a stern warning to the public regarding investment activities with RiseVest Technologies Limited.
In an official statement released on its website, the SEC cautioned Nigerians against engaging in any form of investment with RiseVest Technologies Limited, stating that the company is not registered to operate in the capital market.
Source: Getty Images
The regulator is not slacking in its duties and has said several times that protecting Nigerian investors from scammers and fraudsters in the capital market is a core part of its responsibilities.
The SEC has also unveiled plans to provide financial literacy for Nigerian women to help them build wealth and avoid Ponzi schemes.
This is to complement the federal government's plans to empower 10 million women before 2027.
SEC warns against illegal investments
In related news, the Securities and Exchange Commission (SEC) has warned the public against investing in unregistered investment programs.
It released a list that included Promiseland Estates Limited and Promiseland Building & Construction Limited, the firm behind the illicit Provest investment scheme.
The commission also advised against doing business with UYJ Multitrade Limited, popularly known as My Share, as they are not licensed to operate in the capital market.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
Source: Legit.ng
