SEC intensifies effort to close down, prosecute ponzi scheme operators, promoters

The Securities and Exchange Commission says it is intensifying efforts toward closing down illegal fund managers (ponzi schemes) operators in the country.
Efe Ebelo, the Head, Corporate Communications of SEC, made this known in a statement on Sunday, quoting the Acting Director-General of the commission, Mary Uduk, as giving the assurance in Abuja.
Uduk said the enforcement department of the commission was also working toward prosecuting promoters of the scheme.
According to her, the commission is continuing its awareness through various media to educate investors about these schemes, while urging the public to avoid putting their monies into them.
The acting director-general noted that the commission had introduced a lot of innovations to clean up the market and make it easier and safer for investors.
Uduk listed some of the innovations to include Electronic Dividends (e-dividends), direct cash settlement and regularisation of multiple accounts, among others.
She said other activities aimed at cleaning up the market and improving investors’ confidence were the Risk Based Supervision, encouraging automation and strengthening Self-Regulatory Organisations.
She said: “Ponzi scheme is an ill wind that blows no one any good.
“The commission has reiterated its resolve to ensure that illegal fund managers in the country are not allowed to operate.”
Uduk, who said the commission remained committed to its mandate of protecting investors, assured the public that it would perform the function in line with extant securities legislation.
She said: “We advise prospective investors to cross check properly before patronising any fund manager.
“Information about registered entities and investment schemes approved by the commission can be found on the commission’s website www.sec.gov.ng or any of the commission’s offices.”
The acting director-general, however, expressed optimism that the market would have a positive year.
She thanked the Central Bank of Nigeria for its actions in pushing down sovereign yields and helping fund flows to the equities market.
She said the CBN’s actions in the area of foreign exchange management and how it responded to rising inflation would play a huge role in determining market performance.
“However, we have confidence in their ability to do what is best for the economy. SEC will continue to do its bit to ensure our market continues to grow,” she stressed.