SEC issues desist order on Crowdyvest Halal Fund

The Securities and Exchange Commission (SEC) has warned the general public to desist from investing in Crowdyvest Halal Fund, stressing that the firm is an unregistered entity purporting to operate as a corporative society.

SEC management in a notice on its official website stated that “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.

“A list of authorised Halal Funds and other mutual funds can be found on the website of the Commission.”

The firm in its reply stated that, “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.