The Securities and Exchange Commission (SEC) has issued a strong warning to Nigerians, advising the public to steer clear of GVEST Global, a company it described as operating outside the bounds of regulatory approval. According to the Commission, GVEST Global is neither a registered investment adviser nor a licensed fund manager, and as such, lacks the legal backing to solicit funds from the investing public or offer financial services in the Nigerian capital market.
In a public notice released over the weekend, the apex regulatory body for Nigeria’s capital market sounded the alarm on the firm’s questionable activities, stating that GVEST Global has been promoting what it described as unlawful and unregulated investment schemes. The SEC emphasized that such schemes pose significant financial risks to unsuspecting Nigerians who may be lured by promises of high returns without understanding the potential consequences.
The Commission reiterated its commitment to protecting investors and ensuring that only licensed entities operate within the market. It noted that GVEST Global’s activities amount to a violation of the provisions of the Investment and Securities Act (ISA), which mandates that all entities seeking to act as fund managers or investment advisers must first be registered with the SEC.
In recent years, Nigeria has witnessed a surge in fraudulent investment platforms, many of which collapse after collecting billions of naira from innocent citizens. The SEC has consistently urged members of the public to verify the regulatory status of any firm offering investment products before committing their funds.
As part of its enforcement actions, the SEC stated that it will continue to investigate GVEST Global and take all necessary steps to protect the investing public, including pursuing legal action if required. The Commission also called on promoters of such unauthorized platforms to desist from further violating securities laws or risk facing the full weight of regulatory sanctions.
Nigerians have been urged to be more vigilant and to report any suspicious investment operations to the Commission for proper scrutiny. The SEC maintains a comprehensive list of registered capital market operators on its website and regularly updates the public on firms found to be in breach of investment laws.
GVEST Global has not publicly responded to the SEC’s allegations at the time of filing this report. KIIN360 will continue to monitor this story and provide updates as events unfold.
