Fix law to ensure investors don’t lose in private offers
Friday July 30 2021
Over the past few years there have been several reports of investors losing alarming amounts of money in investment schemes. PHOTO | POOL
By JANE KIRIMI
Summary
The law restricts private offers to a select group of investors who are assumed to be capable of understanding the nature of the investment they are purchasing and the risk they are taking.
A private offer is one that meets the conditions of regulation 21 of the aforesaid Capital Markets Regulations. Most important is that the investors are approached privately.
This opens up an avenue for person with unscrupulous intentions to lure innocent investors into a trap posing as a Private Offer investment opportunity.