Desist from illegal activities or face the law, SEC warns fund managers

The Securities and Exchange Commission (SEC) has warned individuals and organisations to desist from illegal fund management activities or face severe legal consequences.

Emomotimi Agama, director-general of SEC, gave the warning on Sunday in Abuja.

In a statement, Agama said the commission’s enforcement mechanisms will be fully deployed to crack down on those perpetrating illegal activities within the investment climate in Nigeria.

“Section 13(a) of the Investments and Securities Act 2007 states that the SEC has the power to regulate Investments and Securities business in Nigeria. So, within the law, we have the power to do so,” Agama said. 

“What we are doing is strengthening our enforcement mechanism in collaboration with the Nigeria Police Force and the federal ministry of justice. This serves as a notice to anyone not playing by the books to desist or face the law.”

Agama also assured that the SEC is prepared to protect investors and educate them, thereby boosting their confidence in the market.

He said the commission will also superintend over public companies to ensure that good corporate governance is imbibed in their administration. 

Agama added that there are plans to establish a radio station that will disseminate information on the capital market and investment opportunities available to Nigerians at the grassroots.

WORLD INVESTORS WEEK TO HOLD OCTOBER 7-14

The SEC DG also announced the World Investor Week 2024.

This, he said, is scheduled to be held from October 7-14 with the theme ‘Technology and Digital Finance, Crypto Assets and Sustainable Finance’. 

World Investor Week is a global initiative of the International Organisation of Securities Commissions established to raise financial literacy among the public.

Agama said the event is aimed at providing information to investors and educating them on investing in the Nigerian capital market and the opportunities available therein to democratise wealth.

“During the week-long events, we will be reaching out to everyone who is interested and needs to know some of the plans and strategies that the SEC has in place to attract more investors to the market,” he said.

“One of the major plans within the WIW is investor education. You cannot overrule the value and essence of education. 

“A lot of people are not aware of investment opportunities or investment windows, not because they don’t want to invest, but because they just don’t know.

“So, the idea of the World Investor Week is to bring to fore the opportunities that exist, rights of the investor and the dispute resolution mechanisms that are available in case they have those challenges, and also to let them understand the value of investments and preparing for the rainy day.”

Agama further said there is a need for investors to be aware of priority investments, risky investments, the rewards of risky investments and the investments that are less risky.

“The point is, people have to know exactly what their appetite is. It’s not everyone that has a strong risk appetite,” he said.

“So, you need to understand that if you do not have a strong risk appetite, there is an investment meant for you, but if you have a strong risk appetite, there is also an investment meant for you.

“Therefore, having that education and being able to reach out to an investment advisor when you are not sure is a critical part of educating you so you do not get burnt again. With the right education, even when you are burnt, you know you are burnt for a good reason.

“Besides that, we are also incorporating capital market studies into the curriculum of tertiary institutions so that these students can be taught and nurtured from the cradle on the value of the capital market in wealth creation and economic development.”

He said the SEC will leverage social media and other traditional media channels to reach out to the populace in a bid to educate and enlighten them further.