Bamboo, Chaka, Trove Finance and Rise says have started engaging with Securities Exchange Commission (SEC) to seek clarity on the recent rules that warned Nigerians on trading in foreign markets through unregistered platforms.
These digital stock trading platforms are among those affected by the regulation as they are not registered broker-dealers or investment advisers but online platforms for trading in Nigerian and foreign stocks in partnership with registered brokerage firms.
The SEC in its new rule on Thursday pointed out that the provisions of Sections 67-70 of the Investments and Securities Act (ISA), 2007 and Rules 414 & 415 of the SEC Rules and Regulations, did not recognize the foreign stocks being offered by the investment tech platforms.
According to the exchange, 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, it warned Capital Market Operators (CMO) who work in concert with the online platforms to desist henceforth.
Meanwhile, the Chief Executive Officer, Bamboo, Richmond Bassey, in a statement to its clients said it was aware of the recently released SEC circular, adding that it was engaging in discussions with the SEC and its broker partner to ensure users were fully protected.
It said, “First off, we want to assure you that your assets on Bamboo remain safe and easily accessible to you. We want to reassure you that there’s nothing to be concerned about.
“We are still able to carry out all our operations and will continue to do so. Should the situation change, we will inform and advise you on the best course of action.”
Also, the Co-founder and CEO, Chaka Technologies, Tosin Osibodu, assured customers that it was committed to compliance with local laws and regulations.
He said the company had taken steps to obtained the necessary license from SEC.
“We are pleased to inform our stakeholders and the general public that Chaka has taken the necessary steps to register with the Securities & Exchange Commission of Nigeria (SEC) for a newly created license, as SEC continues to maintain its avowed intention to encourage innovation within the market space,” he added.
Also , Trove Finance assured customers that their funds and equities were safe and secure with Trove.
The company said, “Since the memorandum, we have been liaising with the SEC to get more clarity on the circular. We are also engaging with top level executives at our local partner brokers. Additionally, we have involved legal professionals to manage the on-going mediation.
“From all indications, we anticipate everything would be resolved. Kindly note that your US funds and equities are held in custody by Drivewealth LLC, a regulated broker dealer in the US and protected by the SIPC, for up to $500,000.”
Rise also stated that it was in touch with all the relevant stakeholders and assured customers that their investments were secure and safe.
The company pledged to be proactive with safety, regulations and compliance.