The Capital Markets Association of Zambia (CMAZ) has observed with sadness that unscrupulous people have defrauded unsuspecting members of the public by promising them super profits on their investments in stock markets.
CMAZ Board member and Treasurer Dr Sydney Kawimbe said there have been cases in the recent past that are still in court where some institutions have promised their customers returns of above 100% when there is nothing like that.
Speaking during the CMAZ and Worldwide Fund for Nature (WWF) Zambia training workshop in Lusaka attended by the Zambian Business Times-ZBT, Dr Kawimbe said realistically there is no investment that yields 100% profits.
He said this has been happening due to lack of knowledge of how capital markets or stock markets operate on the part of the customers. “We have observed with sadness that unscrupulous people have defrauded unsuspecting customers by promising super profits from their investments in capital markets.
Recently there have been cases that are still in court where some institutions have promised returns of above 100%. Having the public that is not so much knowledgeable in this space, they end up falling in this trap. Realistically you cant have an investment that yields 100% profits in a short period of time, otherwise everyone will stop working hard,” Dr. Kawimbe said.
He said the association was now working towards educating the masses on capital markets and get rich quick schemes to avoid the recurrence of fraud cases in the country.
Dr. Kawimbe advised members of the public to ensure that they report cases of fraud or suspected fraud in capital markets to the police immediately it occurs. The association is also able to help when it involves licensed and member institutions and individuals.
“So when people are defrauded, they need to report to the police immediately. However, we have investment companies that we regulate that abide by the code of conduct, so if you invest in an institution that is not licensed then it becomes difficult for an association to help in such cases.
“It is important to the public that before they can invest, they need to know who regulates that institution that they are investing in,” he said.
Dr. Kawimbe said, “CMAZ is working in order to enhance capital markets by supporting the masterplan, we have also partnered with various stakeholders like Prospero Zambia, ZBT, WWF and BIOFIN Zambia. We are also fostering collaborations with key market players to allow us to increase market depth. We are also participating in via mobile service platforms.
