Those staking money on Fund Managers are to blame themselves following disclosure by the Nigeria Deposit Insurance Corporation (NDIC) distancing self from deposit insurance to such ventures.
The corporation noted the increase in investment channels with innovative products, warning the public the increase in illegal fund managers who have been using different platforms soliciting public to invest their funds with them, promising excessive returns on such investments.
Bashir Nuhu, NDIC’s
Director of Communication & Public Affairs Tuesday said to protect unsuspecting depositors is to continue tosensitise the public on the high risk associated with investing funds with illegal funds managers.
“Accordingly, as the deposit insurer, the NDIC would like to inform members of the public that contrary to claims by some of these funds managers, the Corporation does not insure investments with them.
The NDIC insures ONLY deposits of financial institutions licensed by the Central Bank of Nigeria (CBN) to accept deposits from the public and Nuhu asked the public to visit it’s website to confirm the financial institution that is covered by the deposit insurance scheme of the NDIC.
“To confirm whether a financial institution is covered by the deposit insurance scheme of the NDIC, please visit our website at www.ndic.gov.ng and click on Who We Cover for the complete list. You can also address any other enquiry to the Director, Communication & Public Affairs Department, Nigeria Deposit Insurance Corporation.
“Members of the public are also advised to report any entity suspected to be involved in illegal deposit mobilization to the law enforcement agencies”.
It would be recalled that in March, the Securities and Exchange Commission (SEC) exercising its powers under Section 13 (w) Investments and Securities Act 2007, sealed the premises of Oxford International Group/Oxford Commercial Services, Farmforte Agro Allied Solutions Limited/Agro Partnerships as well as Vektr Capital Investment/Vektr Enterprise for illegally engaging in capital market activities.
The offices of the companies in Lagos, Port Harcourt and Abuja were shut down for carrying out investment operations that fall within ambit of fund management without registration with the apex regulator contrary to the provisions of the Investments and Securities Act 2007.
The companies do not have registration of the SEC to conduct fund management activities but have been found to be promising exorbitant rates of returns to lure investors.
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