SEC warns investors against high returns fraudulent schemes

The Securities and Exchange Commission (SEC) has warned potential capital market investors against putting their funds in fraudulent investment schemes that promise unreasonably high returns that cannot be justified.

The capital market regulator also outlined some of the tactics used by these fraudsters in deceiving unsuspecting members of the investing public.

This caution was given by the Head, Investor Education of SEC, Mr Tunde Kamali, at a webinar titled “The ABC of Savings and Investments” in Abuja, organised by SEC in collaboration with the Financial Literacy Technical Committee (FLTC).

Kamali, while revealing that these fraudsters usually attract their investors through offer of commissions, pressure tactics and fictitious track records, among others, encouraged investors to always ask, check and confirm with the commission before investing in those companies.

He said, “Our duty at SEC is to protect investors by ensuring only fit and proper professionals are allowed to provide financial services. Most times, because of the ways and strategies of the fraudsters, many people do not have enough time to consider before we part with our money.’’

Speaking at the event, the Chief Executive Officer of Greenwich Merchant Bank Limited, Mr Bayo Rotimi, called on investors to always seek professional advice to enhance their knowledge before investing in any asset class.

He called for more companies to have their equities traded on the floor of the Nigerian Stock Exchange (NSE), to add to the current 164 companies, for better investments.