The Securities and Exchange Commission (SEC) has ordered Crowdyvest to suspend the launch and operations of its Halal Fund.
SEC issued a ‘Cease and Desist Order’ to Crowdyvest to stop any other investment activity which involves soliciting investments and deposits from the public in a statement on its website.
According to SEC, the general public should confirm and verify the registration status of entities offering investment product with the Commission and entities offering savings products with the Central Bank of Nigeria.
The statement reads: “The attention of the Commission was drawn to the proposed launch of a Crowdyvest Halal Fund by Crowdyvest an unregistered entity purporting to operate as a corporative society.
“The Commission has since issued a Cease and Desist Order to Crowdyvest to stop the launch and operations of the Crowdyvest Halal Fund and any other investment activity which involves soliciting investments and deposits from the public.
“The general public is hereby put on notice and reminded to confirm and verify the registration status of entities offering investment product with the Commission and entities offering savings products with the Central Bank of Nigeria” SEC posted on its website.
Crowdyvest Says it is not regulated by SEC
Crowdyvest has reacted to the SEC’s public notice on its halal fund stating that it is not regulated by the capital market regulator and does not operate any business within the jurisdiction of SEC.
Detail statement below:
“The attention of Crowdyvest Victoria Island Multi-purpose Cooperative Society has been drawn to news circulating about a SEC issued Cease and Desist Order on one of its products “the Halal Fund”.
“This narrative has occasioned the need for us as an organisation to make a public statement clarifying this misinformation.
“Crowdyvest Victoria Island Multi-purpose Cooperative Society is a cooperative society duly registered under the laws of the Federal Republic of Nigeria with registration no: LCSC 16939.
“On May 7, 2021, Crowdyvest launched a product for her members called the Halal Fund. The product which is purely targeted at the Cooperative society’s members is for investment in a Rice sharing project and complies with the objectives of the Cooperative society.
“On May 11, 2021, the Securities and Exchange Commission issued a cease-and-desist order to Crowdyvest with regards to the Halal Fund as the Commission assumed that it was a call to the general public for investment. Crowdyvest immediately put the launch of this product on hold and on May 14, 2021, explained its position to the Commission, reiterating that the said product was strictly for members of its Society. We are still awaiting feedback from SEC on our response and are surprised that the Commission would publicize its cease-and-desist order and state that we are not a registered entity without proper investigations and confirmation of its power to issue such order to Crowdyvest.
“Crowdyvest Cooperative is NOT a SEC regulated entity and does not operate any business operations within the purview of SEC. We are a credible organization operating as a cooperative society and in line with the Cooperatives law of Lagos State.
“To all our members, please be rest assured that we are in discussions with the SEC to clarify our position and will continue to operate within the ambit of the law. All members’ funds are safe and are being utilized as agreed with members and in line with our bye-laws.
“We also promise to carry all our members along should there be any new development with regards to any of our products.”
