The commission says it intends to restore customers’ confidence in the sectorArticle | August 22, 2012 – 12:08pm | By Eki Toju

The Securities and Exchange Commission (SEC), on Tuesday, announced that the commission will investigate financial institutions in Plateau State that have links with wonder banks.

Eric Elujekor, Head of Department, Enforcement and Compliance of the commission, while announcing this, revealed that two illegal outfits had already been sealed off over the illicit trade.

A statement issued by the commission’s spokesperson, Yakubu Olaleye, said in order to restore customers? confidence in financial institutions, SEC would carry out a thorough investigation on the issue.

?Investors, who volunteered information to SEC officials have said that they were encouraged to part with their monies because they saw bank officials in those offices receiving money,? the statement read.

?They said that the bank officials, after receiving their monies, personally deposited them with the banks. So it is something that we need to investigate.?

He said the shut outfits, which were operating in Jos North Local Council of the state were illegal because most of them were not licensed by SEC.

?Some of them were licenced as fund managers, but as fund managers if you want to mobilise fund and invest, you have to register the fund with SEC. Even those we registered as fund managers never registered the fund they are floating,? Elujekor said.

He assured investors that SEC was working on releasing their trapped investments in the wonder banks.

It will be recalled that, on Thursday, August 17, SEC sealed two illegal fund outfits, on the ground that they were not licenced by the commission.

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