The Securities and Exchange Commission (SEC) has cautioned Nigerians against investing in two entities, Risevest (Victoria Island) Cooperative Multipurpose Society Limited and Stecs (Alausa) Multipurpose Cooperative Society, commonly known as Stecs.
In a circular issued over the weekend, the SEC revealed that neither of these organisations is registered or authorised to operate within Nigeria’s capital market.
The regulator stated that both entities are engaged in unapproved investment schemes targeting unsuspecting members of the public.
The SEC highlighted that Risevest is actively inviting the public to invest in various schemes, while Stecs is promoting its “Stecs Commodity Mudarabah Investment Series I.” Neither entity has received the necessary authorisation to conduct such activities.
“The Commission hereby notifies the public that Risevest (Victoria Island) Cooperative Multipurpose Society Limited and Stecs (Alausa) Multipurpose Cooperative Society are not registered to operate in any capacity in the Nigerian capital market.
Similarly, the investment schemes promoted by them have not been authorised by the Commission,” the SEC stated.
The regulator strongly advised Nigerians to avoid engaging in business with these entities, warning that such investments could expose them to fraud and potential financial losses.
In its bid to safeguard the interests of investors, the SEC urged the public to verify the registration status of any company offering investment opportunities through its official channels.
The Commission reaffirmed its commitment to promoting transparency and tackling the operations of unregistered entities in the capital market.
Rise Vest Technologies Limited describes itself as a technology company offering financial services. The firm, incorporated in Delaware, USA, operates investment products through affiliates and third-party partners. It claims its services are exclusively available to Nigerian residents.
Despite intensified advertising campaigns across radio, billboards, and social media encouraging Nigerians to invest in Risevest, the SEC’s warning signals potential risks associated with the platform.
This warning follows a series of regulatory crackdowns. In 2021, the Central Bank of Nigeria (CBN) froze accounts of fintech companies, including Rise Vest Technologies Limited, after an investigation into alleged illegal foreign exchange transactions.
Although the restrictions were lifted in 2023, the SEC’s latest advisory underscores the continued scrutiny of financial platforms operating in Nigeria.
