Securities and Exchange Commission (SEC) has warned investors and Nigerians to be careful of activities of Famzhi Interbiz Limited because the firm was not authorised to operate as a fund manager in Nigeria.
The apex regulator in the nation’s capital market gave this warning in a statement issued on Friday.
According to SEC, though Famzhi Interbiz applied for a licence and was denied when it did not meet the requirements.
The agency has, therefore, warned that any person who subscribes to the products of Famzhi Interbiz or any other offered by an unregistered entity or enters into any dealing with them does so at his/her own risk.
In the statement signed by the management of SEC, investors were advised to always confirm the registration status of any entity offering fund management or any other capital market services from its website via https://sec.gov.ng/cmos/ or by visiting any of its offices.
“The commission wishes to inform the public that Famzhi Interbiz Limited is not registered to operate in the Nigerian capital market.
“The company had applied to the commission for registration to operate in the capital market but was unable to fulfil certain regulatory pre-conditions required for the grant of registration.
“Despite not being registered by the commission, the company had proceeded to unlawfully solicit funds from the investing public on product(s) neither registered nor approved by the Commission, with the promise of a guaranteed return on investment in clear violation of the Securities and Investment Act (ISA) 2007,” a part of the statement read.
It further disclosed that Famzhi Interbiz has been referred to the “appropriate law enforcement agency for criminal investigation and possible prosecution for violation of the provisions of the Investments and Securities Act 2007 and other relevant laws in Nigeria.”