KEY POINTS
- SEC officially warns investors against sending money to both unregistered entities Risevest and Stecs.
- Operating without proper authorization in Nigeria’s capital market disbars these entities.
- Unregulated platforms expose investors to financial risks through fraud while exposing them to financial losses.
The Securities and Exchange Commission (SEC) has soundly warned Nigerians to avoid all investment transactions with either Risevest (Victoria Island) Cooperative Multipurpose Society Limited or Stecs (Alausa) Multipurpose Cooperative Society Limited known to most people as Stecs.
A circular from the SEC in Abuja announced that both entities lack authorization to operate within Nigeria’s capital market framework.
Both organizations conducted unauthorized financial solicitations according to data from the Commission. Risevest managed multiple investment opportunities and Stecs welcomed people to join its ‘Stecs Commodity Mudarabah Investment Series I’ scheme.
The SEC published its notice explaining that Risevest and Stecs have neither secured registration for market operations nor sought Commission approval for their offered investment plans.
Investors urged to exercise caution
The commission stressed that dealing with unregistered entities carries tremendous risk of fraudulent activity which leads to financial damage for investors.
The public received instructions to stay away from Risevest along with Stecs when doing business within the Nigerian capital market space.
According to the Commission unregistered and unregulated entities leave investors vulnerable to both scams and fund loss.
As part of ongoing SEC protection efforts the agency issues this warning to enhance investor safety and capital market transparency in Nigeria. Before entering financial transactions with investment platforms individuals must verify their SEC registration status to the public.
Operating without proper authorization in Nigeria’s capital market disbars these entities.
Unregulated platforms expose investors to financial risks through fraud while exposing them to financial losses.
