Sri Lanka’s Securities and Exchange Commission (SEC) has issued a strong warning against unregulated investment recommendations, especially those circulated via social media.
The SEC said individuals or organisations offering investment guidance without being a Registered Investment Advisor or otherwise licensed under the SEC Act could face prosecution before the High Court.
Convicted parties may be fined a minimum of Rs. 10 million, imprisoned for up to ten years, or both.
“These measures are designed to protect investors’ interests, which remains one of our core objectives,” the SEC said, highlighting the need for accountability and proper licensing for anyone providing financial advice in Sri Lanka.
The regulator also listed a range of prohibited schemes, as determined by the Central Bank of Sri Lanka:
Tiens Lanka Health Care (Pvt) Ltd
Best Life International (Pvt) Ltd
Mark – Wo International (Pvt) Ltd
V M L International (Pvt) Ltd
Global Lifestyle Lanka (Pvt) Ltd
Fast3Cycle International (Pvt) Ltd
Sport Chain app, Sport Chain zs society Sri Lanka
OnmaxDT
MTFE App, MTFE SL Group, MTFE Success Lanka, MTFE DSCC Group
Fastwin (Pvt) Ltd
Fruugo Oline App/ Fruugo Oline (Pvt) Ltd
Ride to Three Freedom (Pvt) Ltd
Qnet/ Questnet
Era Miracle (Pvt) Ltd and Genesis Business School
Ledger Block
Isimaga International (Pvt) Ltd
Beecoin App and Sunbird Foundation
Windex Trading
The Enrich Life (Pvt) Ltd
Smart Win Entrepreneur (Pvt) Ltd
Net Fore International (Pvt) Ltd / Netrrix
Pro Care (Pvt) Ltd., Shade of Procare (Pvt) Ltd
The SEC advised the public to avoid dealing with these schemes and reiterated that strict legal action would follow any violations of the SEC Act.
Leave a comment