Nigeria’s SEC warns investment platforms to stop trading ‘unregistered’ foreign securities
In a circular released by Nigeria’s capital market regulator SEC today, investment platforms providing access to foreign securities might be treading on dangerous grounds.
According to the SEC regulations that have just been brought to light, these platforms are trading foreign securities not registered in the country and have been warned to stop doing so. Capital market operators in partnership with them have also been warned to renege on providing brokerage services for foreign securities.
Over the past three years, Robinhood-esque platforms like Bamboo, Trove, Chaka and Rise have sprung forth in the Nigerian fintech space. They offer Nigerians access to stocks, bonds and other securities in both local and international markets. These platforms have grown in popularity among the middle class and provide a haven to protect earnings from naira devaluations.
SEC warns of unregistered online platforms
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SCAM ALERT: SEC warns against unregistered online platforms trading foreign securities
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The Securities and Exchange Commission (SEC) has warned Nigerians engaging in investment against the proliferation of unregistered online investment and trading platforms facilitating access to trading in securities listed in foreign markets.
SEC issued the warning in a circular dated April 8 and addressed to Capital Market Operators by the management of the commission in Abuja, the nation’s capital.
“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.
SEC cautions CMOs against working with unregistered online platforms
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