We Became Aware Of CBEX After Nigerians Lost Money—SEC

The Director-General of the Securities and Exchange Commission (SEC), Dr Emomotimi Agama, has responded to public criticism over the agency’s perceived inaction in the collapse of CBEX, a controversial investment platform accused of defrauding unsuspecting Nigerians.

Speaking during an interview on ARISE NEWS on Monday, Dr Agama explained that the SEC could not intervene because CBEX was never registered with the Commission.

“The first responsibility of the SEC is to watch over regulated institutions within the confines of its available resources.

“Once you are registered with the SEC, you are totally and completely under our watch. Registration actually is the hallmark of regulation. Without registration, the possibility of regulation becomes difficult,” he said.

He emphasised that the SEC only became aware of CBEX recently and had not received any reports about the platform before that time.

“It’s very pathetic that Nigerians will lose their money this way,” he said. “At the SEC, and I’m sure speaking for my colleagues, we’re very empathic about the situation. But even at that, we must say clearly that the idea or thoughts that the SEC is not working are totally out of it.”

According to Agama, CBEX had operated outside the Commission’s radar entirely.

“The CBEX is not registered with the SEC. And no one up until last week had reported the CBEX to the SEC as an investment platform or even made an inquiry to that effect,” he stated.

He stressed that despite such limitations, the SEC has remained proactive in educating the public about safe investing.

“We have continued mass education. Just about two months ago, we launched a podcast at the SEC to provide information to people. We’ve also gone around holding enlightenment campaigns all over the place,” he noted.

To avoid falling victim to fraudulent schemes, he advised Nigerians to seek professional advice before making any investments.

“If there is any investment you are not sure about, contact a financial advisor, a lawyer, an investment advisor or a stockbroker. Investments are very serious business, and Nigerians must take time to check and confirm before delving into it.”

On the notion that CBEX was in the process of securing certification, Agama dismissed the claims.

“It’s totally untrue, in capital letters. No institution applies to the SEC after operating. You cannot operate without a licence from the SEC. That alone is a red flag,” he added.

He also addressed the misconception that registration with the Corporate Affairs Commission (CAC) is equivalent to SEC approval.

“Sometimes these people are deceptive and manipulative. They could have applied for registration not as an investment platform or exchange. So they may receive a certificate innocently from the CAC,” he said.

Agama assured that justice will be pursued through an ongoing investigation and collaboration with other relevant government agencies.

“We are continually investigating this CBEX scheme, and of course, we will bring them to book. There is a strong collaboration between all the agencies of government to make sure that this happens. As much as possible, whatever we can recover, certainly in this instance, will be returned back to the investors,” he said.

We Became Aware Of CBEX After Nigerians Lost Money—SEC is first published on The Whistler Newspaper