SEC blacklists six illegal online trading platforms

• Unveils incubation for fintech, new business models

The Securities and Exchange Commission (SEC) has blacklisted six online trading platforms in its latest crackdown on unregistered firms offering investment services in the country.

The blacklisted firms are Prime Invest and Primeinv.co, FXBoxed, New Finance LLC and New Fx Limited and Axi24. Others are Evolve Consulting LCC and Trust Fund-Mining Global Pty Limited.

In a circular released yesterday, SEC stated: “The Commission’s attention has been drawn to the under-listed e-commerce companies and their websites offering online trading platforms to the investing public. They are not registered by the SEC Nigeria and the financial services offered by them are also not authorised.”

SEC, in a statement, signed by its Head of Media, Efe Ebello, advised members of the public to adopt diligence in making investment choices.

“In view of the above, the general public is hereby warned that any person dealing with the e-commerce websites is doing so at his or her own risk,” it said.

The SEC had earlier warned the public against patronising a set of firms blacklisted by Italy’s securities regulator, Commissione Nazionale per le Soecieta’ e la Borsa (CONSOB).

CONSOB had blacklisted five additional e-commerce websites for offering unauthorised and fraudulent financial services.

The blacklisted platforms included capmarketstrategy.io, Bitsterzio, Invest Atlas, Ether-Arena Limited and Ether-Arena Limited operating under venerable.co.

CONSOB had ordered internet service providers (ISP) operating in Italy to block public access to the blacklisted websites and called on prospective investors to adopt the greatest diligence in making investment choices.

Meanwhile, the SEC has also stated that its Regulatory Incubation (RI) programme was designed to address the needs of Fintechs and other new business models and processes that require regulatory authorisation to continue carrying out full or ancillary technology-driven capital market activities.

Announcing the opening of the RI programme for FinTech firms operating or seeking to operate in the Nigerian capital market in a circular, the commission said the RI programme was conceived as an interim measure to aid the evolution of effective regulation, which accommodates the innovation by FinTechs without compromising market integrity and within limits that ensure investor protection.

The commission explained that the portal would be operational between April 28 and May 26, urging registered capital market operators as well as unregistered Fintech innovators that require regulation to apply.

The SEC said the move to open a portal comes from a 2021 Circular where the commission announced the imminent rollout of the RI program for FinTechs operating or seeking to operate in the Nigerian capital market.

SEC said: “Please refer to the Securities and Exchange Commission (SEC) circular of June 2021 announcing its Regulatory Incubation (RI) program for FinTech firms operating or seeking to operate in the Nigerian Capital Market.

“This is to inform you that the portal for submitting applications is now ready to receive applications from Cohort 001/23, from 28/04/2023 to 26/05/2023. Cohorts will be announced at specific times.

“The Circular identifies those that can apply as registered capital market operators, unregistered fintech innovators that require regulation, firms of all sizes and firms that want to enhance investor participation in the Nigeria capital market”.

The Circular further revealed that FinTechs in the areas of crowdfunding, ROBO advisory/digital investment advisory and sub-broker serving multiple brokers using a digital platform are urged not to apply, adding there are existing regulations for the segment.