SEC Warns Against Illegal Fund Management Activities
By Patience Ikpeme
The Securities and Exchange Commission (SEC) has issued a stern warning to entities engaged in illegal fund management activities, urging them to desist forthwith or face legal consequences.
The Commission’s Director General, Dr. Emomotimi Agama, made this statement as the SEC prepares to host World Investor Week 2024 from October 7-14, with the theme “Technology and Digital Finance, Crypto Assets, and Sustainable Finance.”
World Investor Week is a global initiative established by the International Organization of Securities Commissions (IOSCO) to promote financial literacy among the general public. The week-long event will feature various activities, including bell ringing ceremonies, panel discussions, investor outreach, and investor clinics.
Dr. Agama emphasized that the SEC will not tolerate illegal activities in the investment climate and will utilize its enforcement mechanisms to hold perpetrators accountable. He cited Section 13(a) of the Investments and Securities Act 2007, which grants the SEC the power to regulate investment and securities businesses in Nigeria.
The SEC Director General assured investors that the Commission is committed to protecting their interests and educating them about the opportunities available in the Nigerian capital market. He explained that the World Investor Week aims to provide information, educate investors, and democratize wealth.
Dr. Agama highlighted the importance of investor education in understanding investment opportunities, risks, and rewards. He emphasized that investors should be aware of their risk appetite and seek advice from investment advisors when necessary.
The SEC plans to leverage social media and traditional media channels to reach out to the populace and educate them about the capital market. Additionally, the Commission intends to establish a capital market radio station and incorporate capital market studies into tertiary institution curricula to promote financial literacy.
By taking these steps, the SEC aims to create a more informed and engaged investor community, fostering confidence in the Nigerian capital market and contributing to the country’s economic development.
