SEC partners others to eliminate fraudulent investment outfits

The Securities and Exchange Commission (SEC) on Wednesday said that the commission was partnering with other regulatory bodies to get rid of fraudulent investment outfits in the Nigerian capital market to boost investors’ confidence.

Recall that September 2017, SEC had barred the Managing Director of Partnership Investment Company Plc and partnership Securities Limited, Victor Ogiemwonyi, for life from holding directorship positions in any public company for alleged unprofessional conduct in the capital market

SEC has also withdrawn the operating licences of Partnership Investment Company Plc and Partnership Securities Limited. The Chairman of the companies, Mr. Henry Omoragbon, was also suspended for a period of five years from engaging in capital market activities in Nigeria.

Mounir Gwarzo, who stated the new drive of the agency at the 2017 World Savings Day and Financial Literacy Week held in Lagos, said that the commission was working with other regulatory bodies to combat the proliferation of fraudulent investment outfit in the nation’s capital market.

Gwarzo, who was represented by Mr Henry Rowland, Director Investment Services, SEC, stated that the commission was committed to ensure zero tolerance to fraudulent activities in the market.

“We are partnering with CBN, NIBBS, PENCOM, CSCS and other regulatory bodies to combat the negative effect of fraudulent investment outfit in the market.”

He, however, stressed the need for prospective investors to seek the help of financial advisers while investing in the capital market to confirm those financial outfits that were registered with the commission.

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According to him, these advisers would help ascertain the true position of any investment outfit before any financial transaction can be carried out.

On the importance of savings, he said that savings played an important role in determining the one’s future and urged students and youths to embrace savings culture.

Mrs Oluwatoyin Sanni, the Chairperson, Financial Literacy Committee, called on investors to ensure that the companies they want to buy shares from file returns and records of their performance, profitability and dividend payment on quarterly basis.

“Prospective investors must check the quality of board of companies, the directors, the profile of the chairman and other corporate governance issues relating to the firm.

“Again, check the business model of the company you want to invest in, how the business plans work, how does the plan translate to profits. Look at the past, present and future of the company if the business lines, products and services is relevant in today’s world,” Sanni said.