The Securities and Exchange Commission (SEC) has issued a stern warning to the public, advising against any business dealings with Marino FX Limited. The regulatory body clarified that the company is not registered or licensed to operate in Nigeria’s capital market, including cryptocurrency exchanges.
SEC’s Notice and Warning
In a public notice, the SEC stated:
“We hereby notify the public that Marino FX Ltd, which claims to be a SEC-licensed cryptocurrency exchange, is NOT registered or licensed by the SEC to operate in any capacity in the Nigerian capital market. Any such claims are false and misleading.”
The Commission urged Nigerians to exercise caution, emphasizing that engaging with unregistered entities like Marino FX exposes investors to significant financial risks, including fraud and potential loss of funds.
SEC’s Commitment to Investor Protection
SEC reaffirmed its commitment to safeguarding investors in Nigeria’s capital market and vowed to continue efforts to combat scams and fraudulent activities. The agency warned that transacting with unregulated firms often leads to financial losses and undermines the integrity of the market.
Proposed Crackdown on Ponzi Schemes
Last week, a public hearing was held on the proposed Investments and Securities Bill (ISB) 2024, which introduces severe penalties for Ponzi scheme operators. Key highlights of the bill include:
- Penalties: Offenders could face fines of up to N20 million, 10 years in prison, or both.
- Prohibition: The bill expressly bans Ponzi and pyramid schemes and seeks to strengthen existing laws to protect investors.
SEC’s Stance on Ponzi Schemes
Dr. Emomotimi Agama, Director-General of the SEC, stressed the importance of the proposed measures, stating that Ponzi schemes exploit unsuspecting Nigerians. According to him, these fraudulent schemes have thrived due to loopholes in the current legal framework.
Agama explained that the ISB 2024 aims to:
- Remove ambiguities in the existing law (ISB 2007).
- Introduce new provisions that enhance Nigeria’s capital market competitiveness.
- Enforce stricter penalties to deter illegal fund managers.
Investor Implications
SEC’s warning and the proposed legal reforms signal a tough stance on fraudulent financial schemes. Investors are encouraged to verify the registration status of any investment platform with the SEC before committing their funds. These developments highlight the need for vigilance in navigating Nigeria’s complex financial landscape.
By taking a proactive approach to regulation and enforcement, the SEC aims to create a safer investment environment, ensuring that only credible and compliant operators participate in Nigeria’s capital market.
