The Securities and Exchange Commission (SEC) has issued a strong warning to Nigerians against investing in Risevest (Victoria Island) Cooperative Multipurpose Society Limited and Stecs (Alausa) Multipurpose Cooperative Society, popularly known as Stecs.
In a circular released over the weekend in Abuja, the SEC stated that neither Risevest nor Stecs is registered or authorised to operate in Nigeria’s capital market.
According to the Commission in a press statement on Sunday, both entities are involved in unapproved investment schemes targeting unsuspecting members of the public.
The SEC explained, “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 I.”
Public advised to refrain from unauthorised investments
The Commission stressed that the two entities are not authorised to operate in any capacity in the Nigerian capital market and that their investment schemes have not been approved.
It warned, “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 cautioned the public against engaging in any business transactions with these organizations, stating that investments with unregistered entities expose investors to fraud and the potential loss of funds.
- As part of its efforts to protect investors, the Commission urged Nigerians to verify the registration status of any entity offering investment opportunities through its official channels.
The SEC reaffirmed its commitment to ensuring transparency and safeguarding investors in the Nigerian capital market. It also emphasised its determination to clamp down on the activities of unregistered entities operating illegally in the market.
What you should know
On its website, Rise Vest Technologies Limited stated that it is a technology firm that provides financial services.
It noted that Rise’s services are only available to residents of Nigeria, adding that Investment products on Rise are offered through affiliates and third-party partners managed by Rise Vest Technologies Limited, incorporated in Delaware, United States of America.
- Nairametrics observed that SEC’s warning comes amid intensified adverts by Risevest on radios, billboards, and social media, encouraging Nigerians to invest on the platform.
- In August 2021, a federal high court in Abuja granted the request of the Central Bank of Nigeria (CBN) to freeze the accounts of some fintech companies for 180 days.
- The accounts included that of Rise Vest Technologies Limited, Bamboo Systems Technology Limited, Bamboo Systems Technology Limited OPNS, Chaka Technologies Limited, CTL/Business Expenses, and Trove Technologies Limited.
- In a court paper filed at that time, the apex bank said it was investigating ‘illegal foreign exchange transactions’ by the fintech companies.
- Earlier that year, the bank had also announced that it got orders from the Federal High Court, Abuja division, to freeze 194 bank accounts belonging to firms and Bureaux de Change to enable it to conduct investigations into suspicious activities.
However, in July 2023, the CBN instructed banks to lift the post-no-debit restriction on the bank accounts of 440 individuals and companies, including that of fintechs like Bamboo, Risevest, and a sports betting company, Nairabet.
The apex bank in a circular signed by a former Director of Banking Supervision, A.M. Barau, and sent to all banks, directed the banks to inform all the affected customers, comprising companies and individuals of the decision.
