By PETER EGWUATU

In its determination to restore investors’ confidence and prevent further abuses by market operators, the Securities and Exchange Commission (SEC) has vowed to fish out capital market operators who duped investors and ran out of Nigeria to settle in other foreign countries.

Director General of the SEC, Ms. Arunma Oteh, who revealed this to Vanguard, recently, said, “We will not rest in our determination to restore investor confidence and protection.

“So, for those registered capital market operators who collected money from innocent investors with the intention of investing the money in the capital market and thereafter absconded to other countries, the Commission will try as much as possible to track down these fraudsters and bring them back to Nigeria for prosecution.”

On how the fraudsters would be tracked down, she said, “The Commission has been signing bilateral agreement/cooperation on securities dealings with member countries of the International Organization of Securities Commissions (IOSCO).

Also, we intend to sign bilateral cooperation with security agents across the world. So, there will be no hiding place for any registered capital market operators who must have duped investors and ran away to other countries. We will get them through these security operatives once information about these people is sent to them.

“We will soon be having collaboration with the US Intelligence and Security Agencies as SEC Nigeria is a member of the IOSCO’s Africa/Middle-East Regional Committee. We would be collaborating with countries that are not even members of IOSCO to make sure we get rid of fraudsters in our market.”

Ms Oteh, DG, SEC

It would be recalled that ISOCO was formed in 1983 as the international “standard setter” for securities markets. While it is without actual authority over its national regulator members, IOSCO has enunciated basic principles that should form the basis for financial market regulation globally.

Despite the fact that it is inherently a consensus-seeking organization, IOSCO is currently contemplating whether implementation of IOSCO principles should be a condition for membership. IOSCO’s membership regulates more than 90 percent of the world’s securities markets.

On the local scene, the SEC recently collaborated with the Nigeria Police to strengthen its enforcement unit.

At the inauguration ceremony of the 18-man team seconded to the Commission, Oteh said, the deployment of policemen to the Commission will help speedy resolution of cases involving market abuses, fraudulent disposal of investors’ assets, illegal fund management, wonder banks, insider dealings, corporate accounting fraud and share manipulation by capital market operators.

She further declared that despite the great successes recorded by the Commission in tackling fraudulent practices in the market, the SEC is not resting on its laurels as there are still illegal fund managers, wonder banks, and possible cases of market abuse.

According to her, “It is our earnest hope that this synergy with the police will help to significantly reduce, if not totally eradicate, these nefarious activities to the benefit of investors and the Nigerian capital market.”

She, however, commended Inspector General of Police, Mohammed .J Abubakar for releasing his best officers to complement SEC’s enforcement team.

In her words, “ The presence of the staff of the office of the honourable Attorney General along with your personnel will obviously speed up the process of investigation and prosecution of capital market related offences and thereby boosting investor confidence and market discipline.”

Meanwhile, in his comment during the inauguration of the 18 man team seconded to the Commission, Abubakar warned criminals to stop such act or be prepared to face the wrath of the law.

He charged the policemen to be good ambassador of the police by ensuring that every culprit found wanting is dealt with in accordance with the Investment and Securities Act and regulation. The 18 man team is headed by Chief Superintendent of Police (CIP), Babakura Mohammed, eight inspectors and others in the rank and file.

The IGP, said, ‘ It is my solemn desire to make Nigeria safer for the growth and economic development of the nation. Life and property which include tangible and intangible assets must be protected.”

Continuing, he said, “ The inter agency collaboration is in the right direction as both Nigeria Police, Economic and Financial Crime Commission (EFCC) and SEC are committed to deliver their mandate of protecting life and property of the  people.

There have been several discussions between myself and the DG of SEC on the issue of having a police desk in the commission, so the deployment of these men will help SEC to discharge their responsibilities.