A Nigerian digital investment platform, Chaka Technologies Limited, and its investment broker, Citi Investment Capital Limited, have been included in the US Securities and Exchange Commission (SEC) latest publication of the Public Alert: Unregistered Soliciting Entities (PAUSE) list for misinforming investors in the United States.
Ripples Nigeria obtained a US Securities and Exchange Commission (SEC) document on Tuesday, listing Chaka and Citi Investment Capital and 56 other unregistered entities that use misleading information to solicit non-US investors.
The regulator explained: “The latest additions are firms that SEC staff found were providing inaccurate information about their affiliation, location, or registration.
“Under U.S. securities laws, firms that solicit investors generally are required to register with the SEC and meet minimum financial standards and disclosure, reporting, and record keeping requirements.”
The document read: “you should understand that the inclusion of a name on these lists does not mean that the SEC has concluded that a violation of the US securities laws has occurred or that the SEC has made any judgment about the merits of the securities being offered by these entities.”
The list is periodically updated by the SEC’s Office of Market Intelligence, in coordination with the Office of Investor Education and Advocacy and the Office of International Affairs.
As indicated by SEC that the inclusion on the list does not mean a violation of US Securities laws, it appears Chaka and Citi have both been included on this list without reference to the respective licensing status of the two companies in their primary countries of operation, Nigeria.
On this score, Chaka remains the only entity licensed by the Securities and Exchange Commission in Nigeria as a Digital Sub-Broker while Citi is a duly licensed broker in Nigeria.
It is expected that the companies will engage the US SEC further to provide more information on their licensing status in their operational countries.
Chaka, founded by Tosin Osibodu, offers Nigerian investors to invest in brokerage and investments facilitated by Citi Investment Capital Limited.
Citi Investment Capital is a trading license holder of the Nigerian Exchange Group (NGX), the capital market authority.
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