SEC warns investors on fraudulent e-trading platforms

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Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC) has raised an alarm for the public on investing public against activities of unregistered and fraudulent global online platforms.

SEC responded to a report that the Italian securities regulator, Commissione Nazionale per le Soecieta’ e la Borsa (CONSOB) made, blacklisting four e-commerce companies and blocked their websites for fraudulent e-trading and unauthorised offering of financial services.

The blacklisted companies and their blocked websites included:

Tetris Group Limited, https://clydetrade.world; Broker Capitals Limited, http://broker-capitals.com, https://platform.brokercapitals.com;

MTinvesting, mtinvesting.com; and

NBIMarkets, nbimarkets.com, and https://account.nbimarkets.com.

According to the CONSOB analysis, online financial services providers use the complexity of their business models and the general lack of knowledge of most prospective investors to hide information about their operations, leading the majority of investors to make uniformed decisions.

The CONSOB called on investors to adopt the greatest diligence to make informed investment choices in order to safeguard their savings, including checking the registration status or otherwise of such companies.

“The Commission also wishes to draw the attention of the Nigerian investing public that the aforementioned companies are not registered by the SEC Nigeria and the investment schemes promoted by these entities are also not authorized by the SEC.

“In view of the above, the general public is hereby warned that any person dealing with the named companies in any capital market related business is doing so at his or her own risk,” SEC stated.

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