The Securities and Exchange Commission (SEC) has given 63 capital market operators up till this Friday, to regularise their operational status with the apex capital market regulator or risk withdrawal of their operating licence.
In a circular to market operators, SEC directed the companies, which included investment bankers, reporting accountants, solicitors, stockbrokers and fund managers among others, to provide necessary documents to support and update their registration status.
The affected companies included Arnold Portfolio Co, an individual investment adviser; Austin Mwana & Co, Ayo Kasumu & Co, Balogun & Balogun, Bendu Peter Ser. Nigeria Limited, Capital Chambers, Chancery Advocates, Chika Egwuatu & Partners, Co-Link Investment & Management Company Limited, Cosmic Chambers, Dambale (Nigeria) Limited, Danladi Bamaiyi & Co, David & Moore, E. Duro Alalade & Co, Eddy Okpiabhele & Co, Equibond Securities Limited, Equinox Asset Management Limited, Ezugo Isiadinso & Partners, FB Asset Management Limited, Femi Ajijala & Co, Frank Ilonyosi & Co, H. B. Fabunmi & Co, Hassan, Nakpodia & Co, Heap Investment Limited, Honey Comb Asset Management Limited, Irving & Bonnar, Jubilee Global Fund Plc, Kendall Securities Limited, Lakesworth Investment & Securities Limited, LASACO Assurance Plc, Lateef O. Fagbemi & Co, Leadway Assurance Co, Maj-Gen Ibrahim Bata Malgwi Haruna (rtd), MGI Alabi, Ekundare, MICC Consult-Mashasha Investment & Commerce Company Limited and Mohammed Yamah & Company, a firm of solicitors.
Others included Mojibola Oluwa & Co, O.Thomas & Co, Olajuwon Omotimirin & Associates, Olusegun Olunuga & Co, Olusola Ibidapo-Obe & Co, Olutayo Adenekan & Co, Oluwole Akanle & Co, Osindero Oni & Lasebikan, Osunbade, Okiti & Co, Pan Securities Limited, Petroleum Investment Management Limited, Platinum Capital Limited, Prudential Securities Limited, Regency Financings Limited, S. S. Afemikhe & Co, Seclink Nigeria Limited, Sekat Company, Shoroye & Associates, Smith,Sule & Associates, Solace Chambers, Stan Consultants Nigeria, Supo Ojo & Co, Synergy Investment & Securities Limited, T. A. Oke, Tochukwu Onwugbufor & Co, Victor & Charles and Visa Investments & Securities Limited, a portfolio management firm.
It should be recalled that SEC had recently changed its fidelity bond policy for capital market operators. All registered capital market operators are henceforth required to maintain a fidelity bond which has a validity period from January to December of each year.
According to the Commission, any fidelity bond which does not conform to this standard will henceforth not be accepted.
“Note that operating in the capital market without a valid fidelity bond is a contravention of the Investments and Securities Act (ISA) No. 29, 2007 and SEC Rules & Regulations Pursuant to the Act,” SEC stated.
A fidelity bond is essentially a form of insurance against internal fraud, malpractices and wilful professional negligence. It provides cushion for various losses that might arise from employee’s dishonesty. – The Nation.