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SEC warns fund managers against holding clients’ funds, securities

The Securities and Exchange Commission (SEC) has warned fund managers against holding on to clients’ funds and securities, noting that defaulters will face the wrath…

The Securities and Exchange Commission (SEC) has warned fund managers against holding on to clients’ funds and securities, noting that defaulters will face the wrath of the apex regulator.

The Director General of the SEC, Mr Lamido Yuguda, stated this at the Post Capital Market Committee press briefing held in Lagos at the weekend.

Yuguda noted that holding on to clients’ funds and securities is a clear violation of the commission’s Consolidated Rule 95 (1-2).

The Fund Managers were reminded that all funds and securities of clients being managed by their firms must be vested with the custodians.

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The SEC DG also said the commission, after a recent inspection of fund/portfolio management operations, found that several fund managers were yet to seek ‘No Objection’ of their products and portfolios from the commission which, he said, is a violation of the commission’s rules.

Speaking further on the outcome of the meeting, Yuguda said, “The market community was reminded of the annual renewal of registration of capital market operators which is aimed at ensuring that only fit and proper persons operate in the Nigerian Capital Market.

“The portal for renewal of registration for the year 2023 will open on 1st January, 2023 and close on 31st January, 2023.”

Yuguda announced that the e-Dividend Committee notified members of efforts to rebuild the E-Dividend Management Mandate System (e-DMMS) platform.

Yuguda also said a non-interest finance (taxation) regulation approved by the Minister of Finance, Budget and National Planning, has been gazetted.