The Securities and Exchange Commission (SEC) has cautioned Nigerians against doing business with Risevest Technologies Limited. According to SEC, Risevest, which claims to be a Digital Dollar/Fund Manager, is not authorized to operate in Nigeria’s capital market.
In a public notice issued on Tuesday, the SEC stated: “Risevest Technologies Limited is NOT registered with the Commission to carry out any operations in the Nigerian capital market. The public is advised to avoid dealing with the company or its representatives.”
Why This Matters
SEC warns that dealing with unregistered and unregulated companies like Risevest increases the risk of fraud and financial losses. Such companies operate without oversight, leaving investors vulnerable. The regulatory body emphasizes its role in protecting investors and ensuring trust in investment platforms.
Verify Before You Invest
SEC urges Nigerians to always confirm the legitimacy of investment firms on its official portal (www.sec.gov.ng/cmos) before putting their money at risk. The Commission’s advisory highlights the importance of due diligence to avoid falling victim to fraudulent schemes disguised as legitimate investments.
Concerns Over Online Investment Schemes
The warning comes amid rising cases of fraudulent online platforms promising high returns. Despite SEC’s warnings, Risevest has continued to advertise heavily on radio, billboards, and social media, encouraging Nigerians to invest in its platform.
What You Should Know
SEC had previously warned against Risevest and other entities like Stecs Cooperative Society, accusing them of running unauthorized investment schemes. Risevest, however, maintains that its operations are legal and registered under Lagos State’s cooperative laws. The company claims it operates through partnerships with SEC-licensed firms like Meristem Trustees Limited and Chaka Technologies Limited. Risevest says it is in discussions with SEC to address these concerns and assures its users that operations remain unaffected.