Breaking News
Translate

SEC goes tough on operators defaulting in fidelity bond

By Peter Egwuatu

THE Securities and Exchange Commission, SEC, is set to penalize capital market operators, CMOs, that fail to file its fidelity bond to the Commission.

Naira
naira

Daniel Sturridge offers £30,000 reward for his kidnapped dog worth £4,000

The Acting Director-General of SEC, Ms Mary Uduk, disclosed this in a media chat in Lagos last week saying, “By virtue of Rule 27 (1) of SEC Rules and Regulations, (made pursuant to the Investments and Securities Act, 2007) every Registered CMO, as defined in the Act, is required to provide and maintain Bond or Professional Indemnity Insurance Policy.”

Commenting on e-dividend, she said: “About one year ago, the SEC stopped the free registration exercise, specifically March 31, 2018. At that time, 2.2 million investors had mandated. It is interesting to observe that just because the free registration stopped, members of the pubic appeared not to come forward again. As at the CMC Meeting, only about 2.7million investors had mandated their accounts.

“There is a strategy that is going to be reviewed and developed by the market in concert with the banks and registrars to entice investors. The fee for every approved mandate is N150 but investors are not going to be asked to pay the amount before they are registered. If you have 120 accounts, you just mandate them company by company and the only thing you will pay per company is N150 even if you have a dividend of up to N200, 000. It is just a processing fee for maintaining the portal and investors are not to be asked to pay at the point. Please encourage them to proceed to their banks and register. We believe that by the time we are giving a report next, we would have improved.”

Vanguard

All rights reserved. This material and any other digital content on this platform may not be reproduced, published, broadcast, written or distributed in full or in part, without written permission from VANGUARD NEWS.

Disclaimer

Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.