An allegation by the Securities and Exchange Commission (SEC) that Chaka Technologies offered for sale shares of foreign companies has been denied by the fintech firm.
In his response to Businessday via telephone, Tosin Osibodu, CEO of Chaka said they were a technology company providing a platform for registered brokers in the US and in Nigeria, specifically Citi Investment Capital.
“Our position is well stated on the platform,” Osibodu.
The SEC’S allegation followed an order to Chaka and its promoters to restrain from advertising or offering for sale shares, stock or other securities of companies or other entities.
The SEC which dragged the fintech to a special tribunal alleged that the defendants were engaged in investment activities, including providing a platform for the purchase of shares in foreign companies such as Google, Amazon and Alibaba.
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The commission also stated that the said activities were carried out by the defendants outside the regulatory purview of the commission and without requisite registration, as stipulated by the Investment and Securities Act 2007.
In its response which Businessday received, Chaka said it does not advertise, solicit, or offer securities of companies as alleged.
It noted that since it began operations in 2019, it has displayed transparency about its regulatory status, leveraging strategic partnerships with registered brokers in the US and in Nigeria, specifically Citi Investment Capital.
“Since we began our journey in 2019, we have been transparent about our regulatory status, leveraging strategic partnerships with registered brokers in the U.S and in Nigeria, specifically Citi Investment Capital Ltd, which is regulated by the SEC. Our commitment to investor education, trust, and transparency remains a top priority,” Osibodu said in the statement.
The SEC has in recent times moved to regulate players in the fintech space. Aside from fintech firms like Chaka, the commission has also released regulatory documents on Crowdfunding platforms and cryptocurrency exchanges operating in Nigeria.
This, it says, is part of measures to encourage innovation within the market space, whilst also ensuring that all market activities are brought within regulatory purview and conducted within the ambit of the law and extant regulations.
