The Securities and Exchange Commission (SEC) has issued a stern warning to Nigerians against engaging with Risevest Technologies Limited, a company that presents itself as a Digital Dollar/Fund Manager in the Nigerian capital market.
The Commission made this announcement in a public notice released on Tuesday, stating that Risevest is not registered to operate in any capacity within the country’s regulated financial markets.
Risevest Not Registered With SEC
In its official statement, the SEC categorically declared that Risevest Technologies Limited does not hold any registration or approval to function within the Nigerian capital market.
“The attention of the Securities and Exchange Commission (‘the Commission’) has been drawn to the activities of Risevest Technologies Limited, which holds itself out as a Digital Dollar/Fund Manager in the Nigerian Capital Market,” the notice read.
“The Commission hereby notifies the public that Risevest Technologies Limited is NOT registered by it to operate in any capacity in the Nigerian Capital Market.
“Accordingly, the public is advised to refrain from engaging with Risevest Technologies Limited or any of its representatives in respect of any business pertaining or relating to the Nigerian capital market.”
SEC Cautions Against Risks of Fraud
SEC warned that engaging with unregistered and unregulated entities poses significant financial risks, including fraud and loss of investments. The Commission highlighted the dangers of investing in platforms that lack regulatory oversight, as such firms are not bound by the rules and regulations designed to protect investors.
The statement emphasized that the primary role of the SEC is to safeguard investors and ensure the credibility of financial platforms operating in Nigeria. Companies operating without proper regulatory approval are considered illegal and unsafe for investment.
SEC also noted that many unregistered firms make misleading claims about their legitimacy, often using aggressive marketing tactics to attract unsuspecting investors.
Unregulated Platforms and the Growing Trend of Investment Fraud
The warning from SEC comes at a time when Nigeria has witnessed a rise in fraudulent online investment platforms, many of which promise unrealistic returns to lure investors.
Several of these platforms leverage social media, radio advertisements, billboards, and influencer endorsements to create an illusion of credibility. Many Nigerians, seeking high-yield investments, have fallen victim to such schemes, suffering devastating financial losses when these platforms collapse or disappear overnight.
Recent regulatory efforts have sought to clamp down on such platforms and protect investors from exploitation. The SEC has repeatedly emphasized that only licensed and regulated investment firms should be trusted with funds.
Verify Before You Invest
To help the public avoid fraudulent schemes, the SEC strongly advises investors to verify the regulatory status of any investment firm before committing funds. Nigerians can confirm the legitimacy of financial platforms via the SEC’s official portal at www.sec.gov.ng/cmos.
“The Commission reiterates that transacting in the Nigerian capital market with unregistered and unregulated entities exposes investors to fraud and potential financial loss,” the statement continued.
“The investing public is reminded to confirm the status of any company or entity offering investment opportunities via the Commission’s dedicated portal before engaging in financial transactions.”
SEC also urged Nigerians to be cautious of investment platforms that promise guaranteed high returns with little or no risk, as these are common red flags for fraudulent schemes.
Risevest’s Aggressive Promotions Despite Regulatory Red Flags
Despite lacking regulatory approval, Risevest has aggressively promoted its services across multiple media channels, including radio, billboards, and social media. The firm has encouraged Nigerians to invest in its platform, making claims about high-dollar returns and financial security.
SEC’s advisory serves as a direct warning to the public that Risevest is not legally authorized to operate in the Nigerian capital market. The Commission cautioned that any funds invested in such an unregulated platform are at significant risk of loss, with little to no legal recourse available for investors in the event of fraud or platform failure.
Read also: Rise Expands to East Africa with Hisa Acquisition.
Regulatory Action Against Unauthorized Investment Platforms
The SEC continues to take action against unauthorized investment platforms operating in Nigeria. Over the past few years, the Commission has:
- Issued warnings and advisories against multiple firms engaging in fraudulent or unauthorized investment activities.
- Worked with law enforcement agencies to shut down illicit investment schemes and hold promoters accountable.
- Educated the public on the importance of investing only through SEC-licensed and regulated firms to protect their financial interests.
Final Warning: Avoid Unregistered Investment Schemes
With fraudulent investment platforms on the rise, the SEC urges Nigerians to exercise extreme caution when considering investment opportunities.
Investors are reminded that any firm not registered with the SEC is not authorized to operate in the Nigerian capital market. As such, any financial dealings with such firms are done at personal risk.
The Commission reaffirmed its commitment to investor protection and maintaining the integrity of Nigeria’s financial markets. It urged the public to report any suspicious investment schemes to the SEC for further investigation.
As fraudulent investment platforms continue to target Nigerians, the SEC’s warning about Risevest Technologies Limited serves as a crucial reminder to always verify the legitimacy of financial platforms before investing.
Finally, Nigerians are advised to use SEC’s verification portal, remain cautious of high-return promises, and invest only through registered and regulated firms to avoid falling victim to investment fraud.
