CBN, SEC to Nigerians: Verify licence status of companies before you invest

The Financial Services Regulation Coordinating Committee (FRSCC) has admonished members of the public to refrain from dealing with illegal financial operators (IFOs).

This was made known by the committee in an advisory posted on the Central Bank of Nigeria (CBN’s) website on Monday.

FRSCC is an inter-agency body set up to deal with matters of common interest and concern to the various regulatory and supervisory authorities in the financial services industry.

Member agencies include the CBN, Corporate Affairs Commission (CAC), federal ministry of finance, National Insurance Commission (NAICOM), National Pension Commission (PenCom), Nigeria Deposit Insurance Commission (NDIC), Securities and Exchange Commission (SEC), the Nigerian Stock Exchange, Abuja Securities and Commodity Exchange Plc and the Federal Inland Revenue Service (FIRS).

According to the FRSCC, the rise in the activities of IFOs portends a grave risk to public confidence and the stability of the Nigerian financial system.

It said the unlicensed/illegal operators lure and defraud unsuspecting members of the public by offering extraordinary returns on investments as bait.

“Members of the public are advised to visit the websites of the CBN, SEC and other relevant member agencies of the FSRCC to verify the registration and license status of such companies and schemes before investing in them,” the advisory reads.

“You are also advised to report any individual or entities suspected to be involved in such nefarious activities to the law enforcement agencies.”

The committee said financial regulatory agencies would continue to carry out all necessary due diligence before registering/licensing any operator under their regulatory purview.

It mandated the agencies to refer to relevant supervisory authorities for confirmation before finalising any registration/licensing application.

Member agencies of FSRCC were also encouraged to engage in regular sensitisation campaigns on the threats posed by the activities of IFOs.

It urged citizens to address further enquiries to the director, financial policy and regulation, CBN and/or the executive commissioner, legal and enforcement, SEC.