The Securities and Exchange Commission (SEC) of Nigeria has stated that the proposed Investments and Securities Bill (ISB) will prevent the rise of Ponzi/Pyramid schemes and other illegal investment schemes.
This was revealed in a statement issued by SEC Director-General Lamido Yuguda on Sunday in Abuja.
He also stated that it will help the Nigerian financial services industry grow.
Yuguda stated that the bill’s passage will facilitate the effective functioning of the capital market, making it more competitive, and will also aid in the country’s ongoing economic diversification.
He urged lawmakers to pass the bill, citing the fact that broadening the categories of issuers is a critical step toward the introduction of new innovations and services such as crowd-funding.
Importantly, the bill introduces an express prohibition of Ponzi/pyramid schemes as well as other illegal investment schemes.
”The bill also prescribes a jail term of not less than 10 years for promoters of such schemes.
”It expands the definition of a Collective Investment Scheme to include schemes offered privately to qualified investors.
”Minor reviews on various sections of the extant law have been carried out to provide greater clarity,” he said.
He stated that collaboration with the National Pension Commission (PenCom) on the SEC Board for increased synergy is a key component of the bill, which would benefit the Nigerian pension fund industry as well.
