The Securities and Exchange Commission (SEC) has cautioned the public against increasing promotion of unregistered online investment schemes on social media applications and websites, including WhatsApp, Instagram, Telegram, Facebook, TikTok, and other digital platforms.
A statement by the Commission on Thursday noted that the investment schemes exhibit characteristics of Ponzi or prohibited investment schemes, while some operators of such schemes also provide authorised investment services to members of the public. “Accordingly, the Commission hereby advises the public to refrain from investing or participating in any unregistered online investment platform or scheme promising unrealistic or guaranteed returns.
“Members of the public are further advised not to rely on investments advisories circulated through online platforms by persons or entities not registered by the Commission, as reliance on such advisories may expose investors to significant financial losses and fraudulent schemes.
“The public is reminded that under the provisions of the Investments and Securities Act, 2025. Only entities registered by the Commission are authorised to promote investment services, provide investment advisory services, or solicit funds from the public in the Nigerian capital market.” READ ALSO: Nigeria’s Reliance On Local Crude Supplies Booms, Imports Fell In April It advised the public to verify the registration status of any platform, company, or entity offering investment opportunities on the Commission’s dedicated portals.