Bamboo, an online investments platform that allows Nigerians and other users to access foreign and local securities, on Friday assured investors that their asset were safe.
The platform said this in response to the Securities And Exchange Commission’s declaration that services offered by Bamboo and other similar platforms were illegal.
Richmond Bassey, Bamboo’s Chief Executive Officer, said in a statement that investors’ assets on its platform “remain safe and easily accessible to you.”
“We are already in discussions with the SEC and our broker partner and are fully committed to working with them to ensure your interests as our users are fully protected,” he said.
He said, “We want to reassure you that there’s nothing to be concerned about. We are still able to carry out all our operations and will continue to do so. Should the situation change, we will inform and advise you on the best course of action.”
Mr Bassey said by opening a Bamboo account, a user has also opened an account with its U.S. broker partner, DriveWeath LLC, which is licensed by the U.S. Securities and Exchange Commission and is also a member of the Financial Industry Regulatory Authority (FINRA) and the U.S. Securities Investor Protection Corporation (SIPC).
“The SIPC insures your Bamboo account up to $500,000. All your wallet balances on Bamboo are insured up to $250,000 by the U.S. Federal Deposit Insurance Corporation (FDIC),” he said.
Nigeria’s regulator, SEC, said on Thursday that those securities were not registered in Nigeria, and that platforms providing access to them were acting against the law.
It warned that capital market operators in partnership with the platforms to desist from providing brokerage services for foreign securities.
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The move by the SEC to bar fintechs from selling, issuing or offering for sale foreign securities not listed on any exchange registered in Nigeria, if seen through, will negatively impact thousands of Nigerians who have lately been drawn by technology to investing in foreign securities.
Platforms like Bamboo, Trove, and Risevest that offer Nigerians access to stocks, bonds and other securities in both local and international markets, have in recent years grown in popularity in the Nigerian fintech space, especially amongst young people.