Securities and Exchange Commission (SEC) has blacklisted six online trading platforms in its latest crackdown on illegal and unregistered firms purporting to offer investment and finance services and products.
In a circular, the apex regulator said the blacklisted e-commerce companies and their websites offering online trading platforms to the investing public were not registered in Nigeria and the financial services offered by them were also not authorised.
The blacklisted firms include Prime Invest and “Primeinv.co, FXBoxed, New Finance LLC and New Fx Limited, Axi24, Evolve Consulting LCC and Trust Fund- Mining Global Pty Limited.
“Members of the public are advised to adopt the greatest diligence in making investment choices. In view of the above, the general public is hereby warned that any person dealing with the above-mentioned e-commerce websites is doing so at his or her own risk,” SEC stated.
The blacklisting started after SEC received applications for its regulatory incubation (RI) programme for financial technology (fintech) companies as part of measures to mentor and onboard fintech upstarts into the capital market ecosystem.
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Eligible fintech companies and promoters must demonstrate that their innovations meet five eligibility criteria including that such innovation is for application in the Nigeria capital market, safe for investors, a genuine innovation that introduces a new product or process to serve specific investor needs, able to solve existing compliance or supervisory issues and ready for testing.
SEC had earlier warned the public against patronising a set of firms blacklisted by Italy’s securities regulator, Commissione Nazionale per le Soecieta’ e la Borsa (CONSOB).
CONSOB had blacklisted five additional e-commerce websites for offering unauthorised and fraudulent financial services. The blacklisted websites included CMS or capmarketstrategy.io, Bitsterzio, Invest Atlas, Ether-Arena Limited and Ether-Arena Limited operating under veneab.co.
CONSOB had ordered Internet Service Providers (ISP) operating in Italy to block public access to the blacklisted websites and called on prospective investors to adopt the greatest diligence in making investment choices.
CONSOB advised investors that common sense behaviors are essential to safeguarding one’s savings, including checking the registration status or otherwise of such e-commerce websites.
SEC cautioned the public that the e-commerce websites were not registered and the financial services offered by these e-commerce websites were also not authorised by the SEC.