The Securities and Exchange Commission (SEC) has issued a stern warning to companies involved in illegal fund management practices, urging them to cease their activities immediately or face severe legal consequences. This comes as the commission intensifies efforts to safeguard the nation’s financial ecosystem and protect investors from fraudulent schemes.
Speaking in Abuja, the SEC’s Director-General, Dr. Emomotimi Agama, addressed the issue during a press briefing. “We are aware of the rise in illegal fund management operations, and we want to make it clear that these activities are unlawful and will not be tolerated,” he stated. “Entities involved in these practices must desist immediately, or they will face the full wrath of the law.”
The announcement follows the commission’s preparation for the upcoming World Investor Week 2024, slated to take place from October 7-14. This global event will focus on the growing impact of digital technology on finance and will feature the theme “Technology and Digital Finance, Crypto Assets, and Sustainable Finance.”
Dr. Agama emphasized the importance of maintaining a secure and transparent financial system, especially in the wake of the increasing adoption of digital finance and crypto assets. “As we move into an era dominated by technology and digital financial platforms, it is crucial that we safeguard investors from illegal entities that exploit these emerging trends,” he remarked.
He further explained that the SEC would employ all necessary resources to track and prosecute those engaging in unregistered fund management services. According to him, “We have zero tolerance for illegal financial operations, and we will continue to enforce regulations to protect the integrity of the market.”
The SEC has been actively monitoring the rise of digital financial services, which has opened the door to innovative financial products but has also attracted unscrupulous actors. The World Investor Week 2024 aims to address these issues while promoting investor education and awareness. Dr. Agama stressed that the commission is committed to collaborating with stakeholders, including government agencies and international partners, to tackle the challenges posed by illegal fund managers.
“The future of finance is digital, but with that comes new risks. As regulators, we are committed to protecting investors and ensuring that the financial system remains resilient and trustworthy,” he said.
With the SEC ramping up its enforcement efforts, industry experts believe the crackdown on illegal fund managers will help restore confidence in the financial market.
