Business - News - April 9, 2021

Beware of unregistered online FOREX trading platforms, SEC warns

The investing public must beware of the proliferation of unregistered online investment and trading platforms claiming to facilitate access to trading in securities listed in foreign markets, the Securities and Exchange Commission (SEC) warned on Thursday in a circular to Capital Market Operators.
The circular read: “The attention of the SEC has been drawn to the existence of several providers of online investment and trading platforms which purportedly facilitate direct access of the investing public in the Federal Republic of Nigeria to securities of foreign companies listed on Securities Exchanges registered in other jurisdictions.
“These platforms also claim to be operating in partnership with Capital Market operators (CMOs) registered with the Commission”.
The Commission categorically stated further that by the provisions of Sections 67-70 of the Investments and Securities Act (ISA), 2007 and Rules 414 & 415 of the SEC Rules and Regulations, only foreign securities listed on any Exchange registered in Nigeria may be issued, sold or offered for sale or subscription to the Nigerian public.
Accordingly, the SEC notified CMOs who work in concert with the referenced online platforms of the Commission’s position and advised them to desist henceforth or face appropriate sanctions.
“The Commission enjoins the investing public to seek clarification as may be required via its established channels of communication on investment products advertised through conventional or online mediums” the statement added.

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