SEC seals unlawful fund administration agency – The Punch

Feyisayo Popoola

The Securities and Alternate Fee has sealed off the premises of a Lagos-based agency, Rising Circle, for participating in unlawful fund administration actions.

The fee defined that the corporate was shut down for finishing up funding operations that fell inside fund administration with out registration with the apex regulator.

The fee, in an announcement on Tuesday, revealed that it had established that the corporate’s actions additionally constituted an infraction of the Investments and Securities Act, 2007.

The assertion learn partially, “They haven’t registered with SEC and the fee has powers in keeping with Part 13 (w) of ISA 2007 to close down any firm finishing up capital market actions with out due registration.

“The mode of operation of the corporate is that for a brand new entrant, registration is N10, 000 and the individual will not be entitled to merchandise whereas the second class has a registration payment of N16, 000 that entitles the registrant to obtain merchandise.

“For anybody to come back below the corporate, he has to come back below an up liner because the firm engages in networking enterprise.”

It added that for the networking enterprise, the least stage was a place to begin with a minimal registration of $50 and an incentive of $15 for a member that launched two down liners.

It was gathered that the corporate additionally engaged in free seminars at its head workplace for individuals to be taught extra concerning the merchandise and the money-making enterprise with an unbeatable compensation plan and large bonuses.

Nonetheless, SEC disclosed that after registration, the members claimed that they didn’t get any merchandise from the corporate and all efforts to retrieve their funds proved abortive.

Whereas the corporate claimed to have a manufacturing unit in Ogun State, the mentioned manufacturing unit couldn’t be situated although the merchandise have been on show at their Lagos workplace.

SEC Administration mentioned the closure was to finish illegal actions of the corporate towards unsuspecting traders and, due to this fact, urged traders to make sure that they solely take care of fund managers that have been registered with the fee.

It added, “The accounts of the corporate have been frozen and the promoters have been arrested by the Nigeria Police Drive and are present process interrogation.

“The fee needs to inform the investing public that the corporate will not be licensed to hold out investments enterprise of any sort and as such its operations are unlawful.

“SEC, due to this fact, advises the general public to train due diligence and warning in the middle of making funding choices. A legitimate licence of lawful operators may be obtained on the fee’s web site by members of the general public to verify the licences of companies with which they intend to hold out funding actions.”

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