Business

SEC seals firm over illegal fund management transactions

Published

7 years ago

February 21, 2019

The Securities and Exchange Commission in its fight against illegal fund management has sealed off the premises of Growing Circle, a Lagos-based fund management firm, over unlawful fund management activities.

The commission said that the company was shut down for carrying out investment operations that fell within fund management without proper registration with the regulator.

The commission, in a statement on Tuesday, revealed that it had established that the company’s activities also constituted an infraction of the Investments and Securities Act, 2007.

The statement read in part, “They have not registered with SEC and the commission has powers according to Section 13 (w) of ISA 2007 to shut down any company carrying out capital market activities without due registration.

“The mode of operation of the company is that for a new entrant, registration is N10, 000 and the person is not entitled to products while the second category has a registration fee of N16, 000 that entitles the registrant to receive products.

“For anyone to come under the company, he has to come under an up liner since the company engages in networking business.”

The company was said to also engage in free seminars at its head office for people to learn more about the products and the money-making business with an unbeatable compensation plan and huge bonuses.

SEC disclosed that after registration, members said that they did not get any products from the company and all efforts to retrieve their funds proved abortive.

SEC Management said the closure was to end unlawful activities of the company against unsuspecting investors and, therefore, urged investors to ensure that they only deal with fund managers that were registered with the commission.

SEC further said: “The accounts of the company have been frozen and the promoters have been arrested by the Nigeria Police Force and are undergoing interrogation.

“The commission wishes to notify the investing public that the company is not licensed to carry out investments business of any type and as such its operations are illegal.

“SEC, therefore, advises the public to exercise due diligence and caution in the course of making investment decisions. A valid licence of lawful operators can be obtained on the commission’s website by members of the public to confirm the licences of firms with which they intend to carry out investment activities.”