SEC warns investors over online platforms illegally trading in foreign securities for sales
By Samuel Bankole
The Securities and Exchange Commission (SEC) on Thursday said that many online investment and trading platforms offering investment in foreign securities are not doing so in conformity with the extant law.
In a statement posted on its website, SEC said; “only foreign securities listed on any Exchange registered in Nigeria may be issued, sold or offered for sale or subscription to the Nigerian public.”
The capital market regulatory therefore warned all Capital Market Operators (CMOs) who work in concert with the online platform to desist from such transactions.
SEC also advised the investing public to seek clarification from it on such investment types being advertised through conventional or online mediums.
Details of the statement are below.
“The attention of the Securities and Exchange Commission (the Commission) 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 states 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, CMOs who work in concert with the referenced online platforms are hereby notified of the Commission’s position and advised 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,” SEC wrote in the statement.