In a bid to further protect investors and deepen the capital market, the Securities and Exchange Commission (SEC) has announced that it has commenced the implementation of 100% custody requirement in the Collective Investment Schemes sector.
The Director General of the SEC, Mr. Lamido Yuguda who disclosed this during an interview in Abuja said although it is a natural operational requirement of CIS the SEC is having some new enforcement and insistence on the compliance that has been in the books but have not been implemented before now.
He said: “The custody requirement covers all Funds and Portfolios being managed by registered Fund/ Portfolio Managers. So all Client’s assets managed under discretionary and non discretionary mandates are to be held under independent custodial agreement and custodial Banks.
This is in addition to Mutual Funds authorized for public offering “For example, we have the collective business sector where you have the fund managers. We have a dichotomy between public funds, which are funds that are publicly traded, and you can see the unique values on the stock exchange and in newspapers daily.
