Concerns Raised Over Increase In Illegal Fund Managers, SEC

The Securities and Exchange Commission (SEC) expressed concerns regarding the prevalence of illegal fund managers’ activities as well as the proliferation of unlawful investment outfits.

Head, Office of the Chief Economist of the SEC, Dr. Okey Umeano, stated that the upsurge in the activities of illegal fund managers in recent times is a source of worry to the Commission.

“This is an area that we are doing a lot and still have much to do. If you look at the capital market master plan, you will see that a lot of the things we want to do revolve around investor education. In investor education, what we tell investors is how to know who is genuine and it is very simple.

“Just go to the sec.gov.ng you can just on the search portal type CMO. The search portal comes out and you type the name of the firm marketing to you. If it is not there then it is not registered with the SEC, which means you are not protected. You are not covered by that investor protection that I am talking about. Those who are marketing financial products, investment related financial products must come to the SEC and be registered”.

He further stated that the Commission has a police unit that assists in investigating these entities and carrying out enforcement actions when the need arises, while also collaborating with relevant government agencies like the Nigeria Financial Intelligence Unit and the Economic and Financial Crimes Commission.