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The Securities and Exchange Commission (SEC) has warned the Nigerian business community to be careful of the activities of Famzhi Interbiz Limited, saying the company is not registered as a financial services institution.

The apex investment window regulatory body has therefore declared that neither the entity nor the illegal products that Famzhi offers are registered or regulated by the Commission.

SEC in a statement said: “The Commission wishes to inform the public that Famzhi Interbiz Limited is not registered to operate in the Nigerian Capital Market. The company had applied to the Commission for registration to operate in the capital market but was unable to fulfil certain regulatory pre-conditions required for the grant of registration.”

The capital market regulator indicated that despite not being registered by the Commission, the company had proceeded to unlawfully solicit funds from the investing public on product(s) neither registered nor approved by the Commission, with the promise of a guaranteed return on investment. SEC insists that the move was in clear violation of the Securities and Investment Act (ISA) 2007.

Consequently, the Commission said it has referred the company to the appropriate law enforcement agency for criminal investigation and possible prosecution for violation of the provisions of the Investments and Securities Act 2007 and other relevant laws in Nigeria.

The statement further advised the general public to always confirm the registration status, of any entity offering fund management or any other capital market services, from the Commission’s website or by visit to any of the Commission’s offices.

It further warned that any person who subscribes to any product of an unregistered entity or enters into any dealing with such entity, does so at his or her own risk.

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