SEC Warns Against Investments in Risevest and Stecs Cooperative Societies

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The Securities and Exchange Commission (SEC) has once again sounded the alarm, urging the public to avoid investment transactions with two unregistered entities—Risevest (Victoria Island) Cooperative Multipurpose Society Limited and Stecs (Alausa) Multipurpose Cooperative Society, commonly referred to as Stecs. The SEC’s advisory underscores the critical role of due diligence in safeguarding investors from fraudulent schemes.

In a circular issued over the weekend in Abuja, the Commission revealed that both Risevest and Stecs are actively engaging in unauthorized capital market activities by inviting the public to invest in their schemes. SEC emphasized that neither entity is registered or authorized to operate in Nigeria’s capital market, making their activities illegal and highly risky for investors.

“The attention of the Securities and Exchange Commission has been drawn to the activities of Risevest (Victoria Island) Cooperative Multipurpose Society Limited, which is engaging in capital market activities by inviting the public to invest in its various investment schemes,” the SEC stated.

“Similarly, our attention has been drawn to Stecs (Alausa) Multipurpose Cooperative Society (popularly known as Stecs), which is engaging in capital market activities by inviting the public to invest in its Stecs Commodity Mudarabah Investment Series I.”

The SEC reiterated that neither the entities nor their investment schemes have received the necessary authorization to operate in any capacity in the Nigerian capital market. The Commission advised the public to disengage from any business dealings with these entities to avoid potential financial losses.

This latest warning serves as a stark reminder of the risks associated with investing in unregistered or unregulated schemes. Many investors, lured by the promise of high returns, often overlook the critical step of verifying the legitimacy of entities they transact with. Unfortunately, such negligence often results in devastating financial losses, as unregistered firms typically operate outside the regulatory framework, leaving investors with little to no recourse in cases of fraud.

The SEC’s ongoing vigilance and commitment to protecting investors underscore the importance of regulatory oversight in ensuring market integrity. However, the onus also lies on individuals to take proactive steps. Simple actions, such as confirming an entity’s registration status through SEC’s official website or contacting the Commission directly, can make the difference between a secure investment and a financial catastrophe.

As Nigeria continues to grow its capital market, strengthening public awareness about investment risks and the importance of regulatory compliance remains critical. Fraudulent schemes thrive on ignorance and desperation, but a well-informed public is far less likely to fall victim.

For inquiries or to verify the registration status of entities offering investment opportunities, the SEC encourages the public to reach out via its official channels: