The Securities and Exchange Commission, SEC, has cautioned Nigerians against engaging in any investment-related transactions with Risevest (Victoria Island) Cooperative Multipurpose Society Limited and Stecs (Alausa) Multipurpose Cooperative Society, commonly known as Stecs.
The SEC in a circular issued in Abuja disclosed that neither entity is registered or authorized to operate in the capital market.
The Commission stated: “The attention of the Securities and Exchange Commission has been drawn to the activities of Risevest (Victoria Island) Cooperative Multipurpose Society Limited, which is engaging in capital market activities by inviting the public to invest in its various investment schemes.
“Similarly, our attention has been drawn to Stecs (Alausa) Multipurpose Cooperative Society (popularly known as Stecs), which is engaging in capital market activities by inviting the public to invest in its Stecs Commodity Mudarabah Investment Series I.
“The Commission hereby notifies the public that Risevest (Victoria Island) Cooperative Multipurpose Society Limited and Stecs (Alausa) Multipurpose Cooperative Society are not registered to operate in any capacity in the Nigerian capital market. Similarly, the investment schemes promoted by them have not been authorized by the Commission.
“Accordingly, the SEC advised the public to refrain from engaging with Risevest (Victoria Island) Cooperative Multipurpose Society Limited and Stecs (Alausa) Multipurpose Cooperative Society in respect of any business pertaining or relating to the Nigerian capital market”.
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The SEC reiterated that transacting in the Nigerian capital market with unregistered and unregulated entities exposes investors to the risk of fraud and potential loss of investment.
Meanwhile, Risevest has responded to the warning issued by the Nigerian Securities and Exchange Commission (SEC). In an email sent to its customers on Sunday, Risevest explained the legal status of its operations. The company said Risevest Cooperative Society is registered under the Cooperative Society Laws of Lagos State with Registration No. 17080.
It also mentioned that its Nigerian operations are supported by Meristem Trustees Limited, a company licensed by the SEC, and Chaka Technologies Limited, an SEC-licensed digital sub-broker.
“These structures empower us to manage and invest our users’ funds in both local and global markets,” the company said. “We have always operated in line with guidelines established by regulators to safeguard consumers.”
Risevest also said it has contacted the SEC to understand the concerns raised in the warning. The company assured its users that all its services are working as usual.
“We are committed to delivering investment opportunities in a safe, compliant, and beneficial manner,” the statement continued. “Our mission to connect users to the best wealth opportunities locally and globally remains unwavering.”