SEC Intensifies Clampdown on Illegal Fund Managers

By Adedapo Adesanya

The Securities and Exchange Commission (SEC) has strengthened its enforcement mechanism against entities engaging in illegal fund management activities, threatening to prosecute those not authorised to carry out capital market functions in the country.

The commission’s Director General, Mr Emomotimi Agama, speaking in Abuja on Sunday in preparation for the commission’s World Investor Week (WIW) for 2024, said his organisation has partnered with the Nigeria Police Force (NPF) to fully enforce the law.

He said that Section 13(a) of the Investments and Securities Act 2007, gave SEC the power to regulate investments and securities business in the country.

“What we are doing is strengthening our enforcement mechanism in collaboration with the Nigerian Police Force and the Federal Ministry of Justice.

”This serves as a notice to anyone not playing by the books to desist or face the law,” he said.

He assured investors and potential investors that the SEC was prepared to protect and educate them to build confidence in the market.

Mr Agama said the forthcoming WIW was a global initiative of the International Organisation of Securities Commissions established to raise financial literacy among the general public.

He said the 2024 WIW would be held between October 7 and 14 themed Technology and Digital Finance, Crypto Assets and Sustainable Finance.

”During the week-long event, we will be reaching out to everyone who is interested and needs to know some of the plans and strategies that the SEC has in place to attract more investors to the market.

“One of the major plans within the WIW is investor education. A lot of people are not aware of investment opportunities or investment windows, not because they do not want to invest, but because they just do not know.

“So, the idea of the WIW is to bring to fore the opportunities that exist, rights of the investor and the dispute resolution mechanisms that are available in case they have those challenges,” he said.

He said SEC would leverage social media and other traditional media channels to reach out to the populace in a bid to educate and enlighten them further.