The Securities and Exchange Commission (SEC) of Nigeria has issued a warning to Nigerians against investing in Risevest (Victoria Island) Cooperative Multipurpose Society Limited and Stecs (Alausa) Multipurpose Cooperative Society, widely known as Stecs.
In a circular released over the weekend, the SEC emphasized that neither of these entities is registered or authorized to operate within Nigeria’s capital market.
The SEC pointed out that both Risevest and Stecs are involved in unapproved investment schemes. Risevest, for instance, has been inviting the public to invest in its various offerings, which the SEC says are not authorized. Similarly, Stecs has been promoting its Stecs Commodity Mudarabah Investment Series I to potential investors.
The regulatory body clarified that these schemes have not been approved by the Commission and warned the public to refrain from engaging with either organisation.
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However, in light of these warnings, Risevest has responded, stating that it is a legitimate operation.
The company clarified that its subsidiary, Risevest Cooperative Multipurpose Society Limited, is registered under the Cooperative Society Laws of Lagos State. It also mentioned that its operations are supported by Meristem Trustees Limited and Chaka Technologies Limited, both of which are licensed by the SEC.
According to the company, “these structures empower us to manage and invest our users’ funds in both local and global markets. We have always operated in line with guidelines established by regulators to safeguard consumers.”
Risevest added that it has contacted the SEC to understand the issues brought up in the warning.
Despite this, the SEC’s warning is a clear message that investing with unregistered entities exposes investors to the risk of fraud and potential loss of funds. The Commission urged the public to verify the registration status of any investment opportunity through the SEC’s official channels, such as its website, phone lines, or email.
