Regulators

Nigerian Securities and Exchange Commission (SEC)

Securities and Exchange Commission The SEC joined the International Organization of Securities Commissions IOSCO in June 1985.

Forex Regulatory Tips

According to the official website information query, the Nigeria SEC does not regulate leveraged foreign exchange.

Organization Profile

Institutional nature
Government agencies
Institutional History
The Nigeria SEC was established in 1979 by Act No. 71 of 1979.
Regulatory functions
1. Registration: Securities and market intermediaries to ensure that only fit and proper persons/institutions are permitted to operate in the market.
2. Surveillance: Surveillance is the practice of conducting exchanges and trading systems to prevent violations of market rules, as well as to prevent and detect manipulation and trading that could lead to market disruption.
3. Investigation: Investigate allegations of violations of laws and regulations related to capital markets and timely enforcement of sanctions
Regulatory Objectives/Scope
Goal: To be Africa's leading capital markets regulator
Scope:
In terms of regulating the market, the Commission oversees the following areas to protect investors and market operators and ensure market integrity.
1) Market Registration Entity:
1. Securities/Commodity Exchanges/Capital Trading Points
2. Futures, Options and Derivatives Exchanges
3. Depository, Clearing and Settlement Institutions
2) Capital market operators:
1. Housing Issue
2. Securities Brokers/Distributors
3. Registrar/Transfer Agent
4. Trustee
5. Reporting Accountants
6. Lawyers
7. Investment advisors, etc.
3) Securities:
1. Stock
2. Bonds
3. Debt instruments
4. Collective investment schemes
Mission: To develop and regulate a dynamic, fair, transparent and efficient capital market to contribute to the country's economic development
Contact
Address: SEC TOWERS, Plot 272, Samuel Adesujo Ademulegun Street, Central Business, DistrictP.M.B:315GarkiAbujaNigeria
Email: [email protected]
Tel: +234 (0) 94621100; +234 (0) 94621168
Fax: 234-1-2644538(Lagosoffice)

Regulatory Inquiries

Leveraged Forex is not regulated by the Nigeria SEC, but other regulated entities can be found by:
Go to http://sec.gov.ng/cmos/ to search, enter the company name in the search box to find the relevant information of the company.

Regulatory complaints

The Nigeria SEC does not regulate leveraged foreign exchange, but if you are not satisfied with other financial investments, you can file a complaint through the following 3 steps:
Step 1: Contact the financial company directly
When you have a complaint, the best way is to contact the financial company directly to help resolve it. Each financial company publishes a complaint management policy on their website. The Nigeria SEC requires each financial company to have an electronic complaint registration system. The complainant needs to fill in the complainant's name, the date of the complaint, the details of the complaint, the result of the complaint and other information or documents related to the complaint.
Step 2: If you are not satisfied with the processing result of the foreign exchange dealer, you can file a complaint with the Nigeria SEC
If you are not satisfied with the dealer's response or you do not receive a response from the financial company within 10 working days, you can contact the Nigeria SEC to file a complaint. Generally, it takes at least 40 working days to process a complaint in Nigeria.
There are 2 ways to complain:
(1) Submit a complaint to the Nigeria SEC by mail.
Email Complaint Address: [email protected]
(2) Submit a complaint to the Nigeria SEC by telephone.
Telephone Complaint Address: +234 (0) 94621100; +234 (0) 94621168
Step 3: File a complaint in court
If you are not satisfied with the response of the foreign exchange dealer or the Nigeria SEC, you can file a complaint with the Investment and Securities Court of Nigeria IST.

Example of punishment

FAQ

1. How are investors protected?
Through SEC/Exchange and other operator laws and regulations, through registration, rulemaking and establishment of Investor Protection Funds (IPFs).
2. How does Nigeria ensure that only suitable entities can provide financial products or services in the capital market?
1) By registering and renewing the registration every two years.
2) Monitor registry operator activities.
3) Conduct investigations to determine violations of market rules and regulations
3. What is a Ponzi/Pyramid Scheme (Scam)?
A Ponzi/pyramid scheme is a fraudulent investment scheme in which an individual or organization pays an individual or organization in return through new capital paid by new investors rather than through profits earned through legitimate sources.
The program promises high returns and involves little or no risk, but in reality, returns old investors by acquiring new ones.
4. Features of Pond's Plan:
1) They never have legitimate investments or assets sufficient to sustain the promised returns.
2) They require new investors to join existing investors. These new entrants are likely to lose their investment because they won't be able to recoup their investment until the program collapses.
3) They promise high returns on investments, usually above the prevailing Monetary Policy Rate (MPR) of the Central Bank of Nigeria.
4) They are not registered with the appropriate governing body.
5) Their promoters are not known to the investing public.
5. Before making any investment plan, please make sure you can answer the following questions:
1) Do you understand the nature of investment?
2) What is the business type of the program?
3) Does the company claim to sell a truly tangible product or service?
4) Is the rate of return sustainable? Is it below or above the CBN Monetary Policy Rate (MPR) of 14%?
5) Prospective investors should avoid any investment they do not understand. Learn how and in what products to invest your money. If the promised rate of return is abnormal, such as more than 20% per year, the authenticity of the investment is called into question. Make sure your return guarantee is not based on recruiting new investors.
6. How do you track your investments?
Ask for documentary evidence of your investment. In the event that documents/receipts cannot be provided, please exercise caution as this may be an illegal operation/business
Find out investment exit strategies before investing
If there are many complicated rules about withdrawing or withdrawing your money, this is your warning sign.
7. What are the investment risks?
Every investment has a certain amount of risk, the basic rule is that the higher the investment risk, the higher the return on investment
You should be highly suspicious of investments that consistently produce normal or high returns regardless of overall market conditions; and investments that provide daily or weekly returns
8. Is the sponsor of the investment registered with the appropriate regulatory authority?
1) Who are the directors/promoters of the company?
2) What are their names, addresses and contact details?
3) Where are the company's headquarters and branches?
4) Does the staff have an engagement/appointment letter or ID card?
5) Is the payment receipt in the name of the individual or company?
6) Is the company's bank account in the name of the individual or the company?
7) Are investment professionals or marketers registered?
8) Which government agency governs their activities?
9) To which agency do I report a breach of contract?
10) Most of the promoters of Ponzi schemes are unlicensed individuals or unregistered companies. Investment professionals or marketers must register with the regulator before starting operations.
9. How do I know the registration status of the investment, company and its promoters?
Proof of merger with the Corporate Affairs Commission (CAC) and registration with the Nigerian Securities and Exchange Commission (SEC) are required
Please contact the Nigerian Securities and Exchange Commission (SEC) to confirm the company's registration status: Email [email protected] or phone 09-4621168
If the investment is not registered with the SEC, then it is recommended not to make the investment.

Related Links

Nigerian Stock Exchange: http://www.nse.com.ng
List of financial entities in Nigeria: http://sec.gov.ng/cmos/

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