SEC Clamps Down On 3 Illegal Fund Management Companies

DG, Securities and Exchange Commission, Ms. Arunma Oteh
DG, Securities and Exchange Commission, Ms. Arunma Oteh

The Securities and Exchange Commission, SEC, weekend revealed that it has clampdown on three illegal companies operating in the country and warned fraudsters to desist from such illegal practices or face the wrath of law.

Director General of the commission, Ms. Arunma Oteh, who revealed this to Vanguard, said the SEC will do everything within its power to track down illegal fund managers in the country in order to protect investors from being cheated.

She said “We have shut down three companies within two weeks from Portharcourt, Sokoto and Ibadan. We need information from the general public to be able to track down on these illegal operators as we are determined to sanitise the market.”

Oteh further stated that the Nigerian economy has done better growing by 6.81 per cent in third quarter (Q3) of the year from 6.18 per cent in the corresponding period of 2012. The SEC boss, said “2013 has been a transition year showing a mixed picture of the global economy.

“While the first half of the year raised concerns on the fragility of global growth with what the International Monetary Fund (IMF) calls ‘3-Speed growth’, the second half is raising hopes of the return of growth as advanced economies are gradually strengthening, despite the slowdown of certain emerging markets. The IMF’s latest outlook expects the world economy to grow by 2.9 per cent in 2013 and accelerate to 3.6 percent growth rate in 2014. Sub-Saharan Africa continues its impressive growth expected to be sustained at 5.3 per cent in 2013.”

Continuing, she said “Domestically, the Nigerian economy has done better as recently released figures from the National Bureau of Statistics (NBS) show that our economy accelerated to 6.81 per cent in Q3 2013 from 6.18 per cent in the previous quarter.

Also speaking, the Executive Commissioner, Legal and Enforcement, SEC, Mrs. Sa’adatu Mohammed Bello explained that the commission is doing everything within its powers to clamp down on fraudulent operators in the market.

Bello, who assured investors that there will be no hidden place for fraudsters in the market, also reiterates the commissions resolve to continue to reinforce compliance to regulations and beam its searchlight on anyone that wants to defraud the market.

“We have done so much on illegal operations and ponzi scheme and we are making strides in that area. In the last two weeks, we have sealed up not less than three ponzi scheme, one in Sokoto, Ibadan and Port Harcourt and we discovered that people use internet to float companies and get people to invest. There is no hiding place for anybody that wants to defraud the market. When we get such information, we freeze the bank account, prosecute them and give investors back their money,” she said. [Vanguard]