The Securities and Exchange Commission (SEC) said its attention was drawn to the proposed launch of a Crowdyvest Halal Fund by Crowdyvest an unregistered entity purporting to operate as a corporative society.
The SEC said it 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 unregistered entity claims its Halal Fund is “a special interest-free plan designed for members whose belief doesn’t permit interests (riba), allowing them to fund Halal compliant projects and businesses. It is interest-free funding with profit and loss sharing at the end of a tenor.”
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“The minimum amount to fund with is N20,000 and a project tenor can last as long as 24 months,” according to information on its website.
Before now, Crowdyvest parades self as an exclusive community that connects members to impact-driven opportunities with good returns. Crowdyvest team is lead by the CEO/Co-founder, Tope Omotolani.
Crowdyvest claims to be an impact-driven cooperative society that creates financial solutions for a community of individuals and organizations that are committed to long-term growth and financial freedom in alignment with the 17 SDGs.
The entity’s vision is “to be the leading impact-focused financial solution driven by digital technology with a community of over 5million members by 2025.”
“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 said.
Crowdyvest had on May 29, before the SEC’s Cease and Desist order stated how Halal Fund work, while also targeting its audience itemized the simple steps they can follow to create a Halal Fund plan.
The unregistered entity claimed that Halal Fund is an innovative product designed to meet their investment needs while keeping in line with Islamic rulings and making notable social impact, adding that. “Halal Fund works with the Mudarabah model. It is transparent, it is fair and it is profitable.”
“Members can fund zero-interest, Halal compliant, and profitable projects on the Crowdyvest platform and profit shared at fund maturity. Best business and Halal-compliant practices are put in place to ensure members act in line with their Faith.”
The unregistered entity also offers what it called Hyperfund, which it claims to be “a discretionary form of fundraising that allows Crowdyvest to finance viable opportunities across various sectors on behalf of our members”, adding that “It is available at all times!”.
