Ponzi schemes, cancer to capital market — SEC

Ponzi schemes, cancer to capital market — SEC

By Ginika Okoye, Abuja.

 

The Securities and Exchange Commission (SEC) has described Ponzi schemes as “cancer” bedevilling effective operations of the capital market.

 

The Director-General of SEC, Mr Lamido Yuguda, said this at a post-Capital Market Committee (CMC) meeting press conference in Abuja on Friday.

 

Yuguda said that the commission had been fighting a serious war against Ponzi schemes where people without licences extorted money from unsuspected victims.

 

He said that SEC had been working with other agencies to reduce access of Ponzi schemes to advertising platforms.

 

“We have been saying that people should only deal with registered operators that have the registration of the Commission.

 

“You must confirm that an operator is licensed with the Commission before you patronise them.

 

“We have done a lot of sensitisation to discourage people from patronising Ponzi schemes but unfortunately, a lot of people still patronise them.

 

“We have cases reported to us and our enforcement unit and the police have been working on many of these cases, trying to resolve issues of investments that have been lost.

 

“It is not really difficult to recognise a Ponzi scheme. When a return is too good to be true, desist from it,” he said.

 

The director-general said that the Commission was collaborating with the Economic and Financial Crimes Commission (EFCC) to fight money laundering and Ponzi schemes.

 

He said that SEC would continue to enlighten the public to desist from patronising Ponzi schemes.

 

Yuguda said that the 2021-2025 revised Capital Market Master Plan (CMMP) would be launched at the next CMC meeting in November.

 

He said that the revised CMMP would help the market to meet up with current and relevant trends.

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