SEC partners CBN, NIBBS to eliminate fraudulent investment outfits

The Securities and Exchange Commission on Wednesday said that the commission was partnering with other regulatory bodies to get rid of fraudulent investment outfits in the Nigerian capital market to boost investors’ confidence.
The Director General of SEC, Mounir Gwarzo, stated this at the 2017 World Savings Day and Financial Literacy Week held in Lagos.
Gwarzo said that the commission was working with other regulatory bodies to combat proliferation of fraudulent investment outfit in the nation’s capital market.
Gwarzo, who was represented by Henry Rowland, Director Investment Services, SEC, stated that the commission was committed to ensure zero tolerance to fraudulent activities in the market.
He said: “We are partnering with CBN, NIBBS, PENCOM, CSCS and other regulatory bodies to combat the negative effect of fraudulent investment outfit in the market.”
He, however, stressed the need for prospective investors to seek the help of financial advisers while investing in the capital market to confirm those financial outfits that were registered with the commission.
According to him, these advisers would help ascertain the true position of any investment outfit before any financial transaction can be carried out.
On the importance of savings, he said that savings played an important role in determining the one’s future and urged students and youths to embrace savings culture.
Oluwatoyin Sanni, the Chairperson, Financial Literacy Committee, called on investors to ensure that the companies they want to buy shares from file returns and records of their performance, profitability and dividend payment on  quarterly basis.
Sanni said: “Prospective investors must check the quality of board of companies, the directors, the profile of the chairman and other corporate governance issues relating to the firm.
“Again, check the business model of the company you want to invest in, how does the business plan work, how does the plan translate to profit.
“Look at the past, present and future of the company if the business lines, products and services is relevant in today’s world.”