Business a.m.
The Securities and Exchange Commission (SEC) has issued a stern directive to unlicensed fund managers, demanding an immediate cessation of all illegal fund management activities or risk facing the full force of the law for their actions.
Emomotimi Agama, the director general of SEC, reiterated the commission’s resolute stance against illegal fund management activities in the Nigerian investment sector in a statement presented on Sunday (September 30) in Abuja.
Agama emphasised the SEC’s legal authority, as stipulated by Section 13(a) of the Investments and Securities Act 2007, to enforce the regulation of Investments and Securities business in the country.
The SEC DG also disclosed that the commission is taking concrete steps to strengthen its enforcement efforts by working closely with the Nigerian Police Force and the Federal Ministry of Justice.
Agama reiterated the SEC’s commitment to safeguarding investors’ interests and maintaining the integrity of the capital market. He also underscored the commission’s relentless focus on promoting good corporate governance among public companies, describing it as a cornerstone of a stable, transparent, and investor-friendly market.
Emphasising its dedication to fostering financial literacy, the SEC also disclosed plans to participate in the global event, World Investor Week 2024, scheduled from October 7-14 with the theme “Technology and Digital Finance, Crypto Assets and Sustainable Finance.”
In line with the overarching goals of the International Organisation of Securities Commissions’ (IOSCO) global initiative, the SEC intends to play a prominent role in increasing public awareness of the latest developments in digital finance, cryptocurrency, and sustainable investment.
By offering critical insights into these evolving areas of finance, the SEC seeks to empower investors with the necessary knowledge and tools to make informed decisions, while also ensuring that they are well-equipped to adapt to the ever-changing financial landscape.
“During the week-long events, we will be reaching out to everyone who is interested and needs to know some of the plans and strategies that the SEC has in place to attract more investors to the market,” Agama said.
Agama further dwelled on the vital role of investor education in promoting informed decision-making and increasing participation in the financial market. He pointed out that many potential investors are often unaware of the vast range of opportunities available to them, stressing the need to raise awareness and equip investors with the knowledge and skills to make sound investment choices.
“The idea of World Investor Week is to bring to fore the opportunities that exist, rights of the investor and the dispute resolution mechanisms that are available in case they have those challenges,” he explained.
Agama underscored the critical need for investors to be cognisant of their own risk appetite, noting that not everyone is comfortable taking on high-risk investments. He highlighted the importance of investors engaging in self-assessment and risk profiling to gain a clearer understanding of their investment profile.
The SEC DG further advised investors who might be unsure of their investment choices to seek the advice of qualified and reputable financial advisors, noting that this can help investors avoid costly mistakes and mitigate potential losses.
To further educate the public, the SEC plans to utilise social media and traditional media channels. “Besides that, we are also incorporating capital market studies into the curriculum of tertiary institutions so that these students can be taught and nurtured from the cradle on the value of the capital market in wealth creation and economic development,” Agama concluded.
