The Securities and Exchange Commission (SEC) has urged Lagos Futures and Commodities Exchange (LCFE) and other commodities exchanges in the country to have investor protection at the centre of their operations in a bid to improve investor confidence and attract more investors.
The Director General of the SEC, Mr. Lamido Yuguda gave the charge during the presentation of Eko Gold Coins to the Management of the Commission by the LCFE in Abuja yesterday.
Yuguda specifically urged the LCFE and the entire value chain to always have investor protection at the core of their work because eventually, this is what will make the product succeed.
According to him, “Now the gold itself has great value, once you put out your money and buy it, you have value that is incontrovertible, but where we need to be careful is the associated investment product, the derivatives products.
“The derivatives products are built around the product itself. We must have investor protection at heart because if it is taken off and investors have confidence that anytime I want to sell this investment am actually likely to get more than I put in which is the true meaning of investment.”
The SEC DG stated that when people invest, they are postponing current consumption for future consumption, and need to be paid some returns as a price for that postponement of current consumption.
SOURCE: THISDAY
