A Nigerian digital investment platform, Chaka Technologies Limited, and its investment broker, Citi Investment Capital Limited, have been included in the U.S. Securities and Exchange Commission’s (SEC) latest publication of Public Alert: Entities unregistered solicitation (PAUSE) to misinform investors in the United States.
Ripples Nigeria obtained a document from the United States Securities and Exchange Commission (SEC) 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 companies that SEC staff believe provided inaccurate information about their affiliation, location or registration.
“Under U.S. securities laws, companies that solicit investors are generally required to register with the SEC and comply with minimum financial standards and disclosure, reporting, and record-keeping requirements.”
The document said, “You should understand that the inclusion of a name on these lists does not imply that the SEC has concluded that a violation of U.S. securities laws has occurred or that the SEC has passed judgment. on the merits of current titles. 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 noted by the SEC, inclusion on the list does not imply a violation of US securities laws, it appears that both Chaka and Citi were included on this list without reference to the respective licensing status of the two companies in their main country of operation, Nigeria.
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In this regard, 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.
Companies are expected to further engage the US SEC to provide more information about their licensing status in their countries of operation.
Chaka, founded by Tosin Osibodu, offers Nigerian investors to invest in brokerage and investments facilitated by Citi Investment Capital Limited.
Citi Investment Capital holds a trading license from the Nigerian Exchange Group (NGX), the capital market authority.
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