SEC Threatens Clampdown on Ponzi Scheme Operators

The Securities and Exchange Commission (SEC) has expressed its resolve to ensure strict enforcement of capital market rules and regulations, and clamp down on illegal fund operators luring unsuspecting investors with various Ponzi schemes.

The Commission said it was necessary to restore investor confidence and attract retail and young investors into the market.

SEC Director General, Lamido Yuguda, who made the declaration at the first virtual capital market meeting, said the forum assured the market of the collective commitment to continue implementing the ongoing initiatives of the Nigerian Capital Market Master Plan and other related initiatives targeted at developing market.

“We further promised to continuously seek ways of improving these initiatives, while we introduce new ones, all to the benefit of market stakeholders.

“In order to increase the visibility and attractiveness of our market, we shall work towards maintaining an environment that is enabled by the appropriate regulatory framework, timely and affordable access to the market, zero tolerance for infractions, heightened investor confidence and awareness, innovative product development and good governance practices.

“We need to restore investor confidence and attract the retail and young investor into the market. Thus, we will ensure strict enforcement of our rules and regulations, strengthen our enforcement regime and clamp down on illegal operators luring unsuspecting investors with various Ponzi schemes,” he said.

According to him, the continuous operation of the capital market in the midst of COVID-19 restrictions was largely due to the existence of business continuity plans of the SEC, exchanges, the Central Securities Clearing Systems, as well as other operators in the market.