It's generally illegal to invest in any investment scheme unless it is registered with the Securities Commission under the Capital Markets & Services Act 2007. Illegal investment schemes are those companies or individuals that are dealing in securities, trading in future contracts, and providing fund management services and investment advice and related to securities or futures without license.
Such illegal investment schemes are normally identified by their promises of very high returns of investment. They will also involve illegal deposit taking as the operator will usually take or accept deposits from investors. Illegal deposit taking without a valid license contravenes the Banking and Financial Institutions Act 1989 (BAFIA 1989).
How to Protect Yourself?
• Always check that a managed investment scheme is registered before investing.
• Be extra careful when dealing with investments that promises exceptionally high returns.
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