The Securities and Exchange Commission (SEC) recorded […]

The Securities and Exchange Commission (SEC) recorded a rise in cases of illegal and unlicensed investment schemes during the first quarter of 2026, registering 11 cases compared to seven in the same period last year, a 57% increase.

According to Diana Sichone, SEC Director of Enforcement and Legal Services, four of these were new reports, up from none in Q1 2025. The commission concluded four cases in the quarter, leaving seven cases unresolved as of March 31, 2026.

 Despite the uptick in violations, the total value of fines imposed decreased by 19%. “Total fines imposed in Quarter 1 of 2026 amounted to K145,000, compared to K180,000 during the same period in 2025,” Sichone explained.

“The reduction corresponds with decreased incidences of breaches.” Sichone further noted that most of the illegal and unlicensed investment advisory activities identified in Q1 2026 were conducted through online platforms.

“The most prevalent violations continue to involve illegal and unlicensed provision of investment advisory services and operation of fraudulent investment schemes, such as Ponzi schemes,” she said.

“All of the identified schemes were promoted online, with at least one perpetrator operating outside Zambia but targeting local investors.” The SEC continues to monitor and enforce regulations to protect investors and encourage compliance within Zambia’s capital markets.

Article by Justine Phiri