SEC leaves unregulated private placement subscribers to their fate

The Securities and Exchange Commission (SEC) has again cautioned investors against venturing into private placement or any form of investment that promises quick and questionable returns.

The apex capital market regulator sounded this warning recently in response to petitions against Aims Asset Management Limited on private placement transactions by the company in respect of the issuer.

In a release on its website, the commission acknowledged petitions from alleged subscribers of private placement by Aims Asset Management, but reiterated that private placement does not fall under its purview of regulation since the affected companies are not listed or regulated by the SEC.

The SEC statement captioned ‘Complaints against AIMS Asset Management Limited in Respect of the Private Placements of Petdrill Development Company Limited and AIMS Assurance Company Limited” partly read: “The Securities and Exchange Commission received various complaints against AIMS Asset Management Limited who solicited and marketed private placements for two private companies namely Petdrill Development Company Limited and Aims Assurance Company Limited.”

SEC said that it commenced investigations into the allegations, but could not make any headway because the affected companies were not regulated by the commission and that the commission. While investigating the activities of AIMS Asset Management Limited which is a registered Capital Market Operator, it was discovered that the two privately owned companies, Petroldrill Development Company Limited and Aims Assurance Company Limited are not captured by the commission