SECC warns against collective schemes

May Kunmakara / Khmer Times No Comments Share:
Sou Socheat (centre), SECC director-general. CCIP

The Securities Exchange Commission of Cambodia (SECC) last week warned the public against collective investment schemes that promise high dividends but have not received regulatory approval.

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Collective investment schemes have been growing in number across the Kingdom, offering investments in real estate and cryptocurrencies that seem too good to be true, SECC, the capital market regulator, said in a statement issued last week.

“This type of investments are not legal. They do not offer real investments in property and people can easily be cheated out of their money. People can lose a lot of money or even properties if they put them down as collateral.

“In this happens, the victim should file a complaint with local authorities,” said SECC.

“With this in mind, SECC calls on the public to exercise extreme caution before investing in collective investment schemes, particularly in derivatives like gold and currencies, as well as futures and digital assets like cryptocurrencies. These companies or investment projects have not obtained a licence from SECC,” it warned.

Om Seng Bora, founder of CEO Master Club, said many Cambodians have little knowledge of financial markets and tools and are therefore susceptible to these schemes.

“A lot of people have been cheated in collective investment schemes because they don’t understand the financial sector and they are just looking at the return rates of the investment,” he said.

“This won’t happen if they invest in a company licensed by SECC. They will not be cheated because collective investment schemes approved by SECC are backed by real investment projects that have been approved by SECC,” he added.

In May, SECC approved a directive on the issuing of licences and supervision of collective investment schemes.

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