Agama: Enforcement mechanisms to curb illegal fund management

The Securities and Exchange Commission (SEC) has announced plans to intensify enforcement mechanisms in order to combat illegal fund management activities in the country. The Director General of SEC, Emomotimi Agama, highlighted the importance of information in protecting investors and building confidence in the market during a recent interview. Agama stated that the SEC's primary objective is investor protection and emphasized the need for individuals to verify the registration status of investment companies with the SEC before engaging with them. The economic challenges in the country have led to an increase in Ponzi schemes, making it crucial for regulatory bodies like the SEC to take proactive measures to safeguard investors. Agama revealed that the SEC is committed to a year-long and continuous effort to identify and clamp down on illegal investment activities. The SEC employs various methods to identify such activities, including monitoring advertisements that do not comply with regulations and investigating complaints from individuals who have fallen victim to fraudulent schemes. Agama stressed the importance of transparency, integrity, and trust in the market to enhance investor confidence. The SEC's ongoing initiatives include the World Investors Week, an IOSCO program focused on investor education. Agama mentioned that the SEC has organized investor clinics at different locations, including universities and marketplaces, to address investor challenges and provide information about investment risks and opportunities. The SEC aims to bridge the information gap among potential investors and enhance their understanding of the SEC's role in investor protection. During the interview, Agama discussed this year's theme for the World Investors Week, which focuses on sustainable finance, cryptos, and digital assets. He highlighted the SEC's efforts to embrace the FinTech community and promote digitalization in the capital market. Agama emphasized the importance of creating a conducive environment for companies to raise capital and for individuals to participate in the market seamlessly. As the year comes to a close, the SEC continues to work towards fostering confidence and trust in the market, promoting investor education, and reducing unclaimed dividends. Agama expressed satisfaction with the progress made in bringing more companies to the market and enhancing accessibility for investors. The SEC remains committed to its mission of protecting investors and ensuring the integrity of the capital market.