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SEC warns investors against patronizing illegal operators

  • Closes Royal Benchmark

The Securities and Exchange Commission has warned members the public against patronizing illegal capital market operators. The Commissioned averred that investors should always consult the list of registered capital market operators on its website to ascertain their authenticity of any operators before entrusting their hard – earned money to such operator for management.

The warning followed the closure of Royal Benchmark Limited, an illegal capital market operator based in Ibadan, Oyo Otate.

In a statement announcing the closure, the SEC said, “This is happening only a few days after the SEC took a similar action against another illegal operator based simultaneously in Port Harcourt and Sokoto and on the heels of earlier enforcement actions taken in Lagos and Jos against unregistered and unlawful operators in the course of 2013.

The build up to the enforcement action against Benchmark Nigeria Limited happened by way of reports to the SEC by victims that one Ade Adesina who purported to be the Managing Director / CEO of Royal Benchmark Limited of No. 11, Ademiluyi Close by Bovas Filling Station, Kogi Street, Bodija, Ibadan, Oyo State was collecting monies in various sums from unsuspecting members of the public under the pretence that same monies were being invested in the Capital market

Subsequent thorough investigations conducted by the Commission showed that neither Ade Adesina nor Royal Benchmark Limited was registered to perform any function in the capital market. Their operations therefore ran counter to the prescriptions of the extant law governing operation in the capital market.

According to the DG of the SEC, Arunma Oteh, “This string of closures by the Commission should send a strong, unequivocal message to illegal fund managers and sundry perpetrators of indiscipline and malfeasance in the capital markets that it is time they sought worthier endeavor.  Illegal entities erode the integrity stock in our markets in addition to introducing hapless investor publics to the agony of loss of value. The SEC frowns severely at their existence”.

Apart from sealing up the offices of illegal operators, the Commission has also sanctioned various operators in the capital market.

Members of the public are advised to consult the list of registered capital market operators and approved fund managers which are displayed on the SEC website: http://www.sec.gov.ng/files/CMO%20DATA/CMOSENTER.htm  to ascertain their authenticity before entrusting their hard – earned money to any operator for management.”


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