Amidst the warning from the Nigerian Securities and Exchange Commission (SEC) to Nigerians against engaging in investment-related transactions with three investment companies, one of the companies, Risevest, has responded to the issue with an explanation of its legal operations in Nigeria.
In a statement sent to its customers on Sunday, the investment platform said that Risevest Cooperative Society is registered under the Cooperative Society Laws of Lagos State with Registration No. 17080.
The company likewise added that its Nigerian operations are supported by Meristem Trustees Limited, a company licensed by the SEC, and Chaka Technologies Limited, an SEC-licensed digital sub-broker.
“These structures empower us to manage and invest our users’ funds in both local and global markets. We have always operated in line with guidelines established by regulators to safeguard consumers,” the company said.
On how it plans to settle the dispute with the regulator, Risevest noted that it has contacted the SEC to understand the concerns raised in the warning and assured its users of the state of its daily operations.
“We are committed to delivering investment opportunities in a safe, compliant, and beneficial manner. Our mission to connect users to the best wealth opportunities locally and globally remains unwavering,” the company assured.
SEC had recently claimed that one of Risevest’s subsidiaries, Risevest Cooperative Multipurpose Society Limited, is not authorized to operate within the Nigerian capital market. It warned that the investment schemes promoted by the cooperative society have not been approved.
“The public is advised to refrain from engaging with Risevest (Victoria Island) Cooperative Multipurpose Society Limited in respect of any business pertaining or relating to the Nigerian capital market.” part of its statement reads.
Risevest issues amid SECs fight against Ponzi scheme
In a press statement released on Friday, SEC cautioned Nigerians against engaging in any investment-related transactions with Risevest (Victoria Island) Cooperative Multipurpose Society Limited and Stecs (Alausa) Multipurpose Cooperative Society, commonly known as Stecs. It claimed that none of the entities were registered or authorized to operate in the Nigeria capital market.
“The Commission hereby notifies the public that Risevest (Victoria Island) Cooperative Multipurpose Society Limited and Stecs (Alausa) Multipurpose Cooperative Society are not registered to operate in any capacity in the Nigerian capital market. Similarly, the investment schemes promoted by them have not been authorized by the Commission,” the regulator warned.
While advising Nigerians against investing in unapproved schemes, the commission noted that transacting in the Nigerian capital market with unregistered and unregulated entities exposes investors to fraud and potential loss of investment.
“The Commission uses this medium to reiterate that transacting in the Nigerian capital market with unregistered and unregulated entities exposes investors to the risk of fraud and potential loss of investment,” it added.
The SEC had earlier in its New Year statement vowed to revamp Nigeria’s commodities market by eradicating Ponzi and Pyramid schemes. The commission expressed its commitment to protecting investors and enhancing legitimate investment opportunities.
The boss, Dr Emomotimi Agama highlighted the commission’s goal of making investor protection its cornerstone and noted that the commission’s 2025 agenda will prioritize market integrity, investor confidence, and economic growth.
“The Securities and Exchange Commission has emphasized that protecting investors remains a cornerstone of its mission assuring that the commission will intensify efforts to stamp out Ponzi and pyramid schemes while paving the way for legitimate investment opportunities to thrive in 2025,” he said.
Agama expressed that the regulator would employ the service of the Investments and Securities Tribunal to ensure timely and fair resolution of market disputes which will later on improve overall market efficiency and boost investors’ confidence.
On its plan to strengthen the commodity market, the commission highlighted that it would strengthen the legal and regulatory framework to create a vibrant commodities ecosystem, which includes leveraging on the country’s agrarian economy to unlock the market’s full potential.
“The commodities market is indeed a major area of interest for us at the SEC. Nigeria is purely an agrarian nation and as such, taking that comparative advantage to the next level is something that the SEC is proud to be a part of. It is a vital part of the Nigerian economy. This year, we will focus on reinforcing the legal and regulatory structures that support growth so we can create a solid foundation for the vibrant commodities ecosystem. Be it a soft commodity or a hard commodity,” the commission’s Director-General added.
Read More: Nigeria’s SEC set to stamp out Ponzi and pyramid schemes in 2025.
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