Ponzi and pyramid scheme promoters risk 10 years in prison
Promoters of Ponzi and Pyramid schemes face 10 years in prison in Nigeria, under the provisions of a bill to repeal the Investments and Securities Act 2007.
This was revealed by Securities and Exchange Commission (SEC) Chief Executive Lamido Yuguda during a presentation at a two-day public hearing before the House Committee on Capital Markets and Institutions on Tuesday. .
The public hearing was held on two bills: “A Bill for a law repealing the Investments and Securities Act 2007; And enact the Investments and Securities Bill to establish a Securities and Exchanges Commission as the supreme regulatory authority of the Nigerian capital market as a market regulator to ensure capital formation, protecting investors, maintaining a fair, efficient and transparent market and reducing systemic risk For related matters (HB-1787).
The second bill is “A Bill for an Act to repeal the Chartered Institute of Securities Dealers Act, CAP.C9, Act of the Federation of Nigeria, 2004 and to provide for the establishment of an institute Chartered Securities and Investments and Related Matters (HB 1858).”
He said that after managing the Bill since July 2007, the Commission has observed some areas that need consideration in order to strengthen, remove ambiguities and introduce new provisions that will improve and reposition the Nigerian market. capital for international competitiveness and national economic transformation.
He said, “There is no doubt that Nigeria indeed needs and deserves an internationally competitive and well-functioning capital market to facilitate the ongoing economic diversification. The passage and enactment of the Investments and Securities Bill 2022 will be a crucial step in this direction.
“It is important to note that the bill introduces an express ban on Ponzi/Pyramid schemes as well as other illegal investment schemes. The bill also provides for a prison term of at least 10 years for the promoters of such schemes”.