THE Securities and Alternate Fee (SEC) has sealed off the premises of Rising Circle in Lagos for participating in unlawful fund administration actions.
In line with the Fee, the corporate was shut down for finishing up funding operations that fall inside fund administration with out registration with the apex regulator.
The fee had established that the corporate’s actions additionally constituted an infraction of the Investments and Securities Act (ISA), 2007.
In line with SEC, “They don’t have registration with the SEC and the Fee has powers in accordance 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 particular person just isn’t 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 for the reason that firm engages in networking enterprise.
For the networking enterprise, the Least stage is a place to begin with a minimal registration of $50 with an incentive of $15 for a member who launched two down liners.
It was gathered that the corporate additionally engages in free seminars at its head workplace for individuals to be taught extra concerning the merchandise and the cash making enterprise with an unbeatable compensation plan and big bonuses.
The SEC disclosed that nevertheless, after registering, the members declare they don’t get any merchandise from the corporate and all efforts to retrieve their funds proved abortive, therefore the criticism to the SEC.
Whereas the corporate claimed to have a manufacturing unit in Ogun state, the mentioned manufacturing unit couldn’t be positioned though the merchandise have been on show at their Lagos workplace.
The SEC Administration mentioned the closure was to finish illegal actions of the corporate towards unsuspecting buyers and due to this fact urged buyers to make sure they solely cope with fund managers which might be registered with the Fee.
“The accounts of the corporate have been frozen, the promoters have been arrested by the Nigeria Police Power and are present process interrogation.
The Fee needs to inform the investing public that the corporate just isn’t licensed to hold out investments enterprise of any kind and as such its operations are unlawful.
The SEC, due to this fact, advises the general public to train due diligence and warning in the midst of making funding selections including that legitimate licence of lawful operators could possibly be obtained on the fee’s web site by members of the general public to verify the licences of corporations with which they intend to hold out funding actions.