SEC Warns Of Unregistered Online Platforms

The Securities and Exchange Commission on Thursday warned the
investing public to tread with caution as there are several
unregistered online investment and trading platforms facilitating
access to trading in securities listed in foreign markets.

The advice was contained in a circular to Capital Market
Operators issued by the Management of the Commission in Abuja,
Thursday.

According to the Circular, “The attention of the SEC has been
drawn to the existence of several providers of online investment
and trading platforms which purportedly facilitate direct access of
the investing public in the Federal Republic of Nigeria to
securities of foreign Companies listed on Securities Exchanges
registered in other jurisdictions.

“These platforms also claim to be operating in partnership with
Capital Market operators (CMOs) registered with the
Commission”.

The Commission categorically stated further that by the
provisions of Sections 67-70 of the Investments and Securities Act
(ISA), 2007 and Rules 414 & 415 of the SEC Rules and Regulations,
only foreign securities listed on any Exchange registered in
Nigeria may be issued, sold or offered for sale or subscription to
the Nigerian public.

Accordingly, the SEC notified CMOs who work in concert with the
referenced online platforms of the Commission’s position and
advised them to desist henceforth.

“The Commission enjoins the investing public to seek
clarification as may be required via its established channels of
communication on investment products advertised through
conventional or online mediums” the statement added.

The Securities and Exchange Commission on Thursday warned the
investing public to tread with caution as there are several
unregistered online investment and trading platforms facilitating
access to trading in securities listed in foreign markets.

The advice was contained in a circular to Capital Market
Operators issued by the Management of the Commission in Abuja,
Thursday.

According to the Circular, “The attention of the SEC has been
drawn to the existence of several providers of online investment
and trading platforms which purportedly facilitate direct access of
the investing public in the Federal Republic of Nigeria to
securities of foreign Companies listed on Securities Exchanges
registered in other jurisdictions.

“These platforms also claim to be operating in partnership with
Capital Market operators (CMOs) registered with the
Commission”.

The Commission categorically stated further that by the
provisions of Sections 67-70 of the Investments and Securities Act
(ISA), 2007 and Rules 414 & 415 of the SEC Rules and Regulations,
only foreign securities listed on any Exchange registered in
Nigeria may be issued, sold or offered for sale or subscription to
the Nigerian public.

Accordingly, the SEC notified CMOs who work in concert with the
referenced online platforms of the Commission’s position and
advised them to desist henceforth.

“The Commission enjoins the investing public to seek
clarification as may be required via its established channels of
communication on investment products advertised through
conventional or online mediums” the statement added.