SEC Warns Investors Over Banned Investment Firm

• SEC Warns Investors Over Banned Investment Firm

Securities and Exchange Commission (SEC) has warned investors to shun a proposed restructuring plan by Partnership Investment Company and its subsidiaries.

In a circular, SEC stated that its attention had been drawn to an electronic message being circulated to investors on behalf of Partnership Investment Company Plc and its subsidiaries, purporting to be undergoing restructuring.

The electronic message titled “Re: Partnership Investment Company Plc Restructuring and Re-organization: A Plan to Pay All Creditors/Customers”, indicates a proposal to investors who lost monies to Partnership Investment Company Plc and its subsidiaries, especially Partnership Securities Limited to sign up to participate in a repayment plan with two options.

The two options included three years’ repayment plan, which includes taking a cash payment or accepting equity in a company to be registered and listed on the Nigerian Stock Exchange (NSE) while the second option involves investors accepting payment of only 50 per cent of their investment payable within 12 months.

SEC noted that following the hearing of the complaints against the Partnership Investment Company and its subsidiaries in June 2017, the Administrative Proceedings Committee (APC) of the Commission had cancelled the registration of the Partnership Investment Limited and Partnership Securities Limited and banned the principal officers and executives of the companies from participating in the capital market.

“Please be further informed that the conduct of the Partnership Investment Company and its subsidiaries on restructuring is very suspicious and appears to be an attempt to scuttle the directives of the APC. In view of the above, the general public is hereby warned to be wary of the proposal and hereby direct Partnership Investment Company Plc and its subsidiaries to submit their repayment plan officially to the Commission for the protection of affected investors,” SEC stated.