20 Aug 2019
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.
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.