The Securities watchdog on Wednesday threatened legal action against members firms who promote pyramid schemes as potential investments.
The watchdog says it does not sanction or approve promotion of investments/participation in pyramid schemes or schemes of similar nature, by any firm or person licensed, registered or regulated by the Securities & Exchange Commission (SEC).rn
rnldblquote The SEC strongly recommends that all organisations and persons licensed, registered or regulated by the SEC prohibit such promotional activities being carried out by their employees within the premises of the organisations or firms, and/or in a manner which may lead the public to believe that investments or participation in pyramid schemes are in any manner sanctioned or approved by the SEC or by such member firms in their capacity as licensed stockbrokers/dealers,
dblquote SEC Director General, Palitha Silva Gunawardene said.rn
rnGunawardene warned that the SEC will take ldblquote appropriate legal action in thi