SEC’s Order: Fintech firm reassures investors of safety

Chaka Technologies Limited, a fintech company, has reassured investors on the safety of their investments following an interim order granted by the Investment and Securities Tribunal (ISL) to restrict the company and its promoters from advertising and offering for sale, shares, stock or other securities of Nigerian Stock Exchange (NSE)-listed companies.

In a statement signed by Co-founder and Chief Executive Officer (CEO), Tosin Osibodu, the company explained that although no formal order from the Nigerian Securities Exchange Commission (SEC) has been received, it reassures investors that it had conducted its operations in accordance with the law.

“We only learned about SEC’s position today and while we await receiving the formal order from SEC, please note that your investments were placed by a duly licensed entity and remain safe through Citi Investments (using the Chaka platform), and will continue to be custodied by an SEC-regulated broker,” the statement said.

It continued: “Since we began our journey in 2019, we have been transparent about our regulatory status, leveraging strategic partnerships with registered brokers in the U.S. and Nigeria, specifically Citi Investment Capital Ltd, which is regulated by the SEC. Our commitment to investor education, trust, and transparency remains a top priority.”

The statement said Chaka Technologies is fully compliant with the commission’s regulations as all local equities are offered through a locally=licensed brokerage firm that is registered with the NS and, Central Securities Clearing System (CSCS).

The company said its legal and operations teams are currently working to resolve the issue.
SEC had applied to the ISL alleging that the firm engaged in investment activities, including providing a platform for the purchase of shares in foreign companies such as Google, Amazon and Alibaba outside the regulatory purview of the Commission and without requisite registration as stipulated by the Investment and Securities Act 2007. Subsequently, ISL granted interim orders to restrict the activities of the company.