The Securities and Exchange Commission (SEC) has warned some fund managers still in the habit of holding on to clients’ funds and securities to desist from the act or face severe sanctions from the apex capital market regulator.
The Director General, SEC, Mr. Lamido Yuguda stated this during the third quarter Capital Market Committee (CMC) press briefing held in Lagos. He noted that such act is a clear violation of the Commission’s Consolidated Rule 95 (1-2) and reminded the Fund Managers that all funds and securities of clients being managed by their firms must be vested with the custodians.
Yuguda also drew the attention of Fund Managers to issues that arose from the Commission’s recently concluded inspection of Fund/Portfolio Management operations that several Fund Managers managing Discretionary and Non-Discretionary Products and Portfolios were yet to seek a ‘No Objection’ of their products and portfolios from the Commission, which is also a violation of the Commission’s Rules.
The SEC DG emphasised the increasing importance of Fintech, Sustainable Finance, Financial Inclusion and Non-Interest Finance. He reiterated SEC’s commitment to continue creating awareness, imparting knowledge and engendering public participation in these topical areas.
