SEC enforces stricter measures against market violators, introduces new ‘name and shame’ policy

The Securities and Exchange Commission (SEC) in Nigeria has recently taken strong regulatory actions against entities in the capital markets. Mainland Trust Limited had its registration revoked, and Centurion Registrars Limited was suspended, along with its directors and sponsored individuals. These decisions were made due to continued non-compliance with regulatory directives and unresolved complaints against these firms.

To further enforce market integrity and protect investors, the SEC introduced a new “name and shame” policy. This policy involves publishing the names of capital market operators (CMOs) who have violated regulations in a dedicated journal. These enforcement measures are part of the SEC’s commitment to ensuring a safe and fair market environment.

Mainland Trust Limited’s license was revoked under specific sections of the Investments and Securities Act, 2007, and the SEC Consolidated Rules and Regulations, 2013. The company’s failure to adhere to regulatory directives and address complaints led to this severe action from the regulator. Clients of Mainland Trust Limited are advised to contact the Central Securities Clearing Systems Plc (CSCS) for assistance in transferring their stock holdings to another stockbroker.

Regarding Centurion Registrars Limited, the SEC invoked relevant sections of the Investments and Securities Act, 2007, for similar violations of non-compliance and investor complaints. The suspension of Centurion Registrars Limited, its directors, and sponsored individuals was imposed to address these issues. Clients of Centurion Registrars Limited are urged to reach out to Africa Prudential Plc for guidance on transferring their portfolios to another registrar.

As part of its new enforcement strategy, the SEC will publish the names of CMOs who violate regulations in an official journal, known as the “name and shame” journal. This initiative aims to discourage misconduct and promote compliance with market laws. By publicly identifying defaulting CMOs, the SEC seeks to uphold the integrity and stability of Nigeria’s capital market while protecting investors.

The SEC’s enforcement measures are crucial for safeguarding the integrity of Nigeria’s capital market, ensuring investor protection, and upholding regulatory standards. These actions underscore the commitment of the SEC to maintaining a fair and transparent market environment for all stakeholders involved.