Wednesday, April 24, 2024
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Refrain from engaging in social media schemes: RBF

The Reserve Bank of Fiji is again warning the public to refrain from engaging in investment schemes presented on social media platforms.

The latest alert follows the Fijian Competition and Consumer Commission’s release last week on a scam by the name of ‘Elite Society’ which is recruiting members through a Facebook account.

In a statement, the Central Bank said ‘Elite Society’ like most similar investment schemes presented on social media, is not approved by them.

Any scheme which has the following features is a managed investment scheme that should be approved by the Reserve Bank of Fiji under the Companies Act 2015:

(i) People contribute money or money’s worth as consideration to acquire rights (interests) to benefits produced by the scheme (whether the rights are actual, prospective or contingent and whether they are enforceable or not);

(ii) Any of the contributions are to be pooled, or used in a common enterprise to produce financial benefits, for members who hold interests in the scheme (whether as contributors to the scheme or as people who have acquired interests from holders); and

(iii) The Members do not have day-to-day control over the operation of the scheme, whether they have the right to be consulted or to give directions.

“In a time when social media is a key source of information for many users, it is important that retail investors wishing to engage in any investment scheme are aware of the risks associated with relying on recommendations disseminated on social media, when making investment decisions,” the RBF stated.

“The public needs to exercise caution when engaging with Elite Society or any schemes operated through non-approved individuals or entities, as fraudulent schemes are becoming more sophisticated in their approach to lure uninformed investors.”

Potential investors are encouraged to thoroughly research any opportunity before investing their hard-earned savings, and are most welcome to contact the Reserve Bank of Fiji to enquire about the legitimacy of investment schemes presented to them on social media platforms.

Ilaitia Ravuwai
Ilaitia Ravuwai
Journalist | news@fijilive.com

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