The President and chairman of Council, Chartered Institute of Stockbrokers (CIS), Oluropo Dada, has said that any unregistered investment in the Nigerian capital market is regarded as a Ponzi Scheme, designed to swindle unsuspecting investors.
Following the recent sudden collapse of digital investment platform, CBEX, with reports indicating over N1.3 trillion loss to investors, Securities and Exchange Commission (SEC), has renewed its campaign against Ponzi schemes and the need for investors to desist from patronizing unregistered investment products and platforms.
Addressing securities dealers at the 30th Annual General Meeting (AGM) of the Institute in Lagos, Dada advised the investing public to protect their hard-earned money by avoiding fraudulent investment schemes, particularly Ponzi Scheme that continue to defraud unsuspecting Nigerians.
He stated: “Any unregistered Investment Scheme is Ponzi. It is even more critical in light of the recent Ponzi scheme that swindled several Nigerians out of their hard-earned money. These schemes often disguise themselves as legitimate platforms offering fast, guaranteed returns but they are nothing more than financial traps”.
Warning investors, he said, “Avoid platforms that promise fast, guaranteed returns, these are classic scam tactics. Watch out for investment not registered with the Securities and Exchange Commission (SEC). An unregistered investment scheme usually promises unrealistic returns with zero risk”.
Reviewing the operations of the Institute for 2024, Dada noted that in order to attract youths into securities profession collaboration with tertiary institutions would continue.
According to him, the campaign on “Catch them Young” is already gaining traction and upon the completion of the ongoing review of the Institute’s Professional Diploma Programme in Securities and Investment. many youths with or without finance background would be able to make a career in the securities market.
“The Institute has continued to pursue strategic collaboration with tertiary institutions in order to boost the interest of younger ones in Securities and Investment profession. The ongoing collaboration agreements with some of the tertiary institutions in Nigeria to run Degree and Post Graduate Linkage Programmes will go a long way in promoting the onboarding of BSc, MBA, MSc and PhD degree programmes in Securities and Investment Studies”