JUST IN: SEC Warns Nigerians Against GVEST Global Over Illegal Investment Operations

The Securities and Exchange Commission (SEC) has issued a strong caution to Nigerians, warning the public against engaging in any form of business dealings with GVEST Global, a company it described as neither registered nor authorized to operate as an investment adviser or fund manager in the country. The regulator, in its latest public advisory, stressed that GVEST Global has been actively promoting investment opportunities to unsuspecting members of the public despite lacking the necessary approvals to do so, making its operations unlawful and potentially dangerous to investors’ finances. According to SEC, the company has positioned itself as a wealth creation platform, luring individuals with promises of mouthwatering returns on investments, yet it is not under the oversight or regulatory framework of the Commission. This, the regulator emphasized, makes GVEST Global a risky venture that could easily collapse, leaving investors stranded without any form of protection or recourse.

The SEC highlighted that GVEST Global’s operations fall within the categories of activities regulated by the Commission, specifically investment advisory and fund management services. However, since the company has not registered with the Commission and has not been granted the required license, all activities it conducts within this scope are deemed illegal. SEC further explained that Nigerians need to be extremely cautious when approached by companies promising guaranteed profits and returns that are far above market standards, as such offers are usually unsustainable and characteristic of fraudulent Ponzi-style schemes. In its warning, SEC reiterated its mandate to protect investors, stressing that any company or platform that fails to comply with its registration requirements should be considered a red flag.

The Commission urged members of the public to always verify the registration status of any investment company or adviser through its official website or by directly contacting its offices across the country before parting with their money. According to the SEC, GVEST Global has failed to meet the legal standards required for operating in Nigeria’s capital market, making it a violation of the Investments and Securities Act (ISA). This law empowers the SEC to regulate all securities, investment advisers, portfolio managers, and collective investment schemes in the country. By operating outside this framework, GVEST Global is not only misleading the public but also endangering the financial security of those who fall prey to its schemes.

In its statement, the Commission reaffirmed that investors who choose to deal with GVEST Global are doing so at their own peril, as they will not be covered by the investor protection mechanisms provided by the SEC for registered operators. The Commission emphasized that many unsuspecting Nigerians have in the past lost their life savings to similar unregulated schemes that mushroomed, attracted large sums of money through promises of quick and unrealistic returns, and eventually collapsed, leaving victims devastated. SEC officials explained that this latest warning forms part of its continuous investor education and awareness campaigns, aimed at curbing the spread of illegal investment platforms that exploit Nigerians’ desire for quick wealth. The Commission stated that while it is working with law enforcement and other relevant agencies to clamp down on such operations, the public must also exercise personal responsibility by steering clear of any investment company that is not listed on the SEC register of authorized operators.

Financial analysts who spoke in response to the SEC’s caution noted that GVEST Global is only one among many emerging platforms that are springing up in Nigeria’s investment landscape, preying on the desperation of individuals seeking alternative means of income amidst the current economic hardship. They stressed that these illegal operators thrive on Nigerians’ growing appetite for high-yield opportunities, which often blinds them to the risks involved. According to analysts, the modus operandi of such firms is usually to offer unbelievably high interest rates, sometimes promising as much as 30% to 50% returns within a short time frame. While these offers may seem attractive, they are unsustainable in the long term and often collapse once new inflows of cash reduce.

The SEC’s warning has therefore been received as a timely intervention to prevent further financial losses among citizens, particularly at a time when many are struggling to stay afloat economically. Experts advised that Nigerians must understand that the higher the promised return, the higher the risk involved, and any scheme that guarantees profit without risk should immediately be treated with suspicion. GVEST Global, according to the SEC, has failed to provide any verifiable track record, regulatory approval, or structural transparency that would indicate its legitimacy as an investment platform.

In its concluding remarks, SEC assured Nigerians that it would continue to monitor the activities of unregistered firms and clamp down on those promoting illegal schemes. It urged individuals, groups, and communities to play a proactive role by reporting suspicious investment operations within their localities to the Commission for appropriate action. The regulator further emphasized that collective vigilance is the only way to ensure that unsuspecting citizens are not exploited by fraudulent actors in the financial sector.

This latest caution follows a long list of similar advisories issued by the SEC in recent years against unregistered operators that parade themselves as investment managers but are, in reality, engaging in illegal activities. From Ponzi schemes like the infamous MMM to more recent crypto-related scams, Nigerians have witnessed the devastating consequences of investing in unregulated platforms. Many victims have lost homes, businesses, and even family relationships due to the financial distress that comes with such scams.

As the country continues to grapple with economic challenges, the temptation of easy and quick money is expected to persist, providing fertile ground for illegal operators like GVEST Global to flourish. However, with increased awareness, strict regulation, and enforcement, the SEC hopes to reduce the frequency of such scams and protect investors from financial ruin. Nigerians are therefore reminded to always do their due diligence, verify licenses, and only engage with investment companies that are duly registered and regulated by the Securities and Exchange Commission.

The Commission has once again sent a clear message: GVEST Global is not a registered investment adviser or fund manager, and any dealings with the company amount to engaging in an illegal and risky venture. Investors are warned to exercise utmost caution and avoid falling victim to promises that sound too good to be true, because in most cases, they usually are.