SEC cautions potential investors against `high returns’ fraud schemes

The Securities and Exchange Commission (SEC) has cautioned potential capital market investors against putting their monies in fraud schemes that promise unwarranted high returns.

Mr Tunde Kamali, the Head, Investor Education of the Securities and Exchange Commission (SEC), gave the advice at a webinar meeting with title `The ABC of Savings and Investment in Abuja’.

Kamali expressed regrets that fraudsters usually attracted their investors through offer of commissions, pressure tactics and fictitious track records, among others.

He called on investors to always ask, check and confirm with the commission before investing in those companies.

“Our duty at SEC is to protect investors by ensuring only fit and proper professionals are allowed to provide financial services.

“Most times, because of the ways and strategies of the fraudsters, many people do not have enough time to consider before we part with our money,’’ he explained.

Mr Bayo Rotimi, the Chief Executive Officer of the Greenwich Merchant Bank Limited, called on investors to always seek professional advice to enhance their knowledge before any asset class.

Rotimi who said the country currently had about 164 companies whose equities were actively traded on the floor of Nigerian Stock Exchange, called for more companies for better investments.

Speaking on Protection of Savings, Ademilola Aluko, Stanbic IBTC Investor Services Relationship Officer, advised citizens to reduce debt, loans and ensure that their expenses were in line with their earnings.

Aluko called on citizens to setup personal emergency funds that would be aimed at meeting their unexpected needs.

Mr Omagbitse Barrow, the Chief Executive Officer, Learning Impact Nigeria, advised citizens to avoid compulsive spending and engage in long term savings.

According to him, short term savings limits the ability of the financial institutions to provide long term investments.

The Market Development Manager of AFEX Commodities Exchange, Funto Olasemo, said that building wealth required consistency and patience.

She called on citizens to invest in equities/stocks, mutual funds, FGN savings fund, pension scheme and Exchange Traded Funds (ETFs).

The meeting was organised by SEC in collaboration with the Financial Literacy Technical Committee (FLTC).