SEC Takes Full Custody of Investors’ Funds to Deepen Market

Image

By Aduragbemi Omiyale

The Securities and Exchange Commission (SEC) said it has commenced the implementation of a 100 per cent custody requirement in the Collective Investment Schemes (CIS) sector.

In an interview in Abuja recently, the Director-General of the agency, Mr Lamido Yuguda, explained that this move was taken to further protect investors and deepen the capital market.

The custody requirement covers all funds and portfolios being managed by registered fund/portfolio managers, and to guard against any shock, all clients’ assets managed under discretionary and non-discretionary mandates are to be held under the independent custodial agreement and custodial banks. This is in addition to CIS (mutual funds) authorized for public offering.

According to Mr Yuguda, taking full custody of investors’ funds in the CIS sector will ensure that any investor that invests in the capital market would be confident that his investments are secure.

He said this is a good thing for the market and an area that can bring about a lot of growth in the market because it offers a very good opportunity to save.

“For example, we have the collective business sector where you have the fund managers. We have a dichotomy between public funds, which are funds that are publicly traded, and you can see the unique values on the stock exchange and in newspapers daily. There are also private, which are investment agreements between fund managers and specific investors

“A lot of these funds in the privately-held fund management mandates are in our custody. The investment manager before now did not only have the investment management responsibility for the fund but also kept the securities and cash as whole shares in this investment.

“The risk is that if the investment manager should go bust, then the investor loses and that is not acceptable in financial markets around the world.

“I think with the introduction of total custody in that sector, we are likely to see a massive uptake of these kinds of products.

“We have released some regulations recently in this area for the different types of fund managers, and I think this is an area that is now becoming increasingly attractive to investors and is also receiving the attention of the commission,” he explained.

The SEC DG said the commission was also looking at the market closely to see how it can bring out regulations that will help investors protect their investments.

“We have a fintech division in the commission that was set up purposely to understand these new types of investment structures and to collaborate with fintech firms that wish to register as capital market operators and offer services to the investing public. This is a developing area, and we intend to issue new regulations from time to time,” he added.

Share
Related Stories
Image
20-September-2023

Market Rises 0.17% as Ellah Lakes Closes as Best-Performing Stock

By Dipo Olowookere Renewed buying interest in consumer goods stocks saved the Nigerian Exchange (NGX) Limited from collapsing on Tuesday, as it finished higher by 0.71 per cent at the close of trading activities. The trading session saw Ellah Lakes ending as the best-performing stock after its value rose by 10.00 per cent to N3.63, leading the gainers’ chart of 35 members. Berger Paints rose by 9.95 per cent to close at N11.60, eTranzact grew by 9.93 per cent to N8.08, Oando improved by 9.92 per cent to N13.30, and Chams also jumped by 9.92 per cent to N1.33. Business

Image
20-September-2023

Exploring Beyond Challenges: A Comprehensive Look into the Excellence of FBS Broker

Introduction In the fast-paced world of forex trading, finding a reliable broker can be a daunting task. With the ever-evolving landscape of financial markets, traders need a partner they can trust, one that understands their needs and challenges. Enter FBS, a brokerage firm that stands tall despite the challenges that have beset the industry. In this review, we delve into the unique strengths of FBS broker and how it has managed to overcome the odds to offer a top-notch trading experience. Turning Challenges into Opportunities FBS broker has not been immune to the challenges that have affected the forex trading

Image
20-September-2023

Dangote Refinery Won’t Rely On Nigerian Crude Oil

By Adedapo Adesanya The Dangote Group Executive, Mr Devakumar Edwin, has said that the Dangote Refinery will not rely solely on Nigerian crude for its operations. This was one of the points made by the official as he gave a detailed production timeline that shed light on crude and product flows as well as delays on the 10-year project to S&P Global Commodity Insights. The company had announced that it would begin producing up to 370,000 barrels per day of diesel and jet fuel in October and gradually reach 650,000 barrels per day by November. The $19.5 billion refinery, which

Image
20-September-2023

NASD OTC Exchange Records Stalemate

By Adedapo Adesanya The key performance indicators of the NASD Over-the-Counter (OTC) Securities Exchange remained unchanged at the close of transactions on Tuesday amid a mixed activity level chart. Business Post reports that the stalemate occurred after the NASD OTC exchange recorded no price gainer or loser, as the prices of stocks on the platform closed flat. Also, the total value of the alternative equity market, measured by the market capitalisation, remained unchanged at N1.138 trillion, and the NASD Unlisted Securities Index (NSI) closed flat at 805.29 points. During the trading session, investors traded a total of 501,437 units of

More Stories
Image
16-August-2018

FG Appoints Adeosun, Fashola, Oniha, Others to NBET Board

By Modupe Gbadeyanka Minister of Finance, Mrs Kemi Adeosun, has been appointed as Chairman of the board of Nigeria Bulk Electricity Trading Company (NBET), following its reconstitution by federal government. Also, appointed by federal government is the Director-General of Bureau of Public Enterprises (BPE), Mr Alex Okoh, who will serve as the Vice-Chairman of NBET board, while Minister of Power, Works and Housing, Mr Babatunde Fashola, will serve as a non-executive director. Other non-executive directors of the NBET board are Director-General of the Debt Management Office (DMO), Ms Patience Oniha; Director-General of Budget Office of the Federation, Mr Ben Akabueze;

Image
03-April-2019

Moody’s Downgrades Access Bank’s BCA Rating to b3

By Dipo Olowookere Access Bank’s baseline credit assessment (BCA) has been downgraded by Moodys’ Investors Service to b3 from b2, with its long-term CRRs dropped to B2 from B1, its long-term CRA lowered to B2(cr) from B1(cr) and the national scale CRRs dropped to Aa3.ng from Aa1.ng. In a release by the rating agency, it was explained that the decision to lower the Nigerian lender’s rating was because of the possible weakening of the bank’s credit profile following the merger with Diamond Bank, despite the immediate improvement to Access Bank’ funding structure and long-term profitability. It said following the merger,

Image
02-December-2017

NNPC Vows to Revamp Depots, Pipeline Network

Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mr Maikanti Baru, has promised to revamp depots of the corporation across the country and also to work on its pipeline network. He further stated that management of the state-owned oil firm will establish more NNPC Retail outlets across the country, noting that the ultra-modern mega stations would help in stabilizing the downstream petroleum sector in the country. Speaking at the formal opening of an ultra-modern mega fuel station along the Sagamu Interchange on the Lagos-Ibadan Expressway, Mr Baru remarked that the concept of the mega station, which took roots

Image
08-September-2020

FrieslandCampina Stocks Appreciate by N8.50 at NASD

By Adedapo Adesanya FrieslandCampina WAMCO Nigeria Plc recorded an N8.50 or 6.54 per cent price appreciation on Monday to trade at N130 per share compared with the previous N121.50 per share. Business Post reports that the milk production company granted easy access to the bulls to the NASD Over-the-Counter (OTC) Securities Exchange yesterday. It was observed that the share price of the company was strengthened during the session on the news that shareholders of PZ Cussons Nigeria Plc were meeting soon to ratify the sale of Nutricima Limited to FrieslandCampina, which is expected to boost both the top line and

Image
06-September-2016

NCC Releases SIM Data To NIMC

By Dipo Olowookere The Nigerian Communications Commission (NCC) has released data from the ongoing Subscriber Identification Module (SIM) cards registration exercise to the National Identity Management Commission (NIMC). The release is to give a boost to efforts of the Federal Government towards harmonising biometric data capturing by different agencies in the country. Executive Vice Chairman of NCC, Prof Umar Danbatta, while receiving the Director-General of NIMC, Mr Aliyu Aziz, at his office, said that, “I will like to pledge our commitment to this cooperation between the NIMC and the NCC to ensure that we have a secure and reliable database

Image
04-January-2017

9 Authors Make Etisalat Prize for Literature 2016 Longlist

By Modupe Gbadeyanka Chair of the judging panel of the 2016 Etisalat Prize for Literature, Helon Habila, has announced the 2016 longlist of nine books. The longlist is made up of entries from first-time authors whose books were published in the past 24 months. The longlisted books are Mr and Mrs Doctor by Julie Iromuanya (Coffee House Press, USA), The Yearning by Mohale Mashigo (PanMacmillan, South Africa), Piggy Boy’s Blues by Nakhane Toure (Blackbird Books imprint of Jacana Media, SA), The Peculiars by Jen Thorpe (Penguin Random House, USA) and Born on a Tuesday by Elnathan John (Cassava Republic, Nigeria).

Image
21-May-2019

Fortune Magazine Names Dangote 11th Greatest Leaders on Earth

Foremost philanthropist and richest man in Africa, Mr Aliko Dangote, has been rated 11th of the 50 World’s Greatest leaders for 2019. The rating carried out by the Fortune Magazine, an American multinational business magazine headquartered in New York City, United States, was released recently and focused mainly on the businesses run by the men and how they have used it to impact their society positively. The time-tested magazine, which first edition was published in February 1930, said the world’s greatest leaders both men and women are transforming the world and inspiring others to do so in business, government, philanthropy

Image
24-February-2023

IPMAN Assures Nigerians Sufficient Petrol During Elections

By Adedapo Adesanya The Independent Petroleum Marketers Association of Nigeria (IPMAN) has assured Nigerians of the availability of premium motor spirit (PMS), commonly known as petrol, before, during, and after the 2023 general elections. The Chairman of IPMAN in Rivers State, Mr Joseph Obele, gave the assurance but warned against panic buying of petroleum products ahead of the polls. Mr Obele, who is also the governorship candidate of the African Action Congress (AAC) in Rivers State, commended the management of NNPC Retail Limited for improving the supply of products to the state. He also disclosed that fuel queues were gradually

Ad
Ad
Recent Stories
Image
21-September-2023

Nigeria Rakes N193.59bn from Solid Minerals in 2021

By Adedapo Adesanya The Nigeria Extractive Industries Transparency Initiative (NEITI) has disclosed that Nigeria saw a 65.7 per cent or N76.77 billion increase in earnings from the solid minerals sector in 2021 to N193.59 billion from the N116.82 billion achieved in 2020. This upward trajectory has been on for the past five years, according to a report from the agency. The Executive Secretary of NEITI, Mr Orji Ogbonnaya Orji, however, lamented that this is still abysmal considering the potential of the sector to the Nigerian economy. He said this while presenting the solid minerals sector report in Abuja, noting that

Image
21-September-2023

Flapmax Picks 12 Startups for AI Accelerator Programme

By Adedapo Adesanya Data and AI technology company, Flapmax, has announced 12 startups selected for the second cohort of the FAST Accelerator startup programme, created in partnership with Microsoft to help strengthen and scale Africa’s digital ecosystem. Following the conclusion of its 2-week Online Bootcamp, which saw 60+ tech companies participate in intensive online training with experienced mentors, FAST Accelerator’s cohort of 12 startups will progress to a 5-week comprehensive acceleration experience in Silicon Valley, California, starting in October. Speaking on this, Mrs Mame-Fatou Gueye, SME Program Manager, Microsoft Africa Transformation Office, said, “Microsoft believes that African startups and small

Image
21-September-2023

CBN Unveils LARP to Ease Microfinance Bank Licence Application

By Adedapo Adesanya The Central Bank of Nigeria (CBN) has unveiled a digital platform for the submission of Microfinance Bank (MFB) licence applications with effect from Monday, September 25. The apex bank made this known in a statement signed by its Director of Corporate Communications, Mr Isa AbdulMumin. “The Central Bank of Nigeria (CBN) is pleased to announce the unveiling of a new online platform for submission of microfinance bank (MFB) licence applications,” the statement released on Wednesday said. According to the statement, the new online platform is called the CBN Licensing, Approval and Other Requests Portal (CBN LARP) and

Image
21-September-2023

CBN Postpones September 2023 MPC Meeting

By Adedapo Adesanya The Central Bank of Nigeria (CBN) has postponed the Monetary Policy Committee (MPC) meeting scheduled to hold next week. In a statement, the apex bank noted that the MPC meeting, which was supposed to take place on Monday, September 25 and Tuesday, September 26, 2023, has been postponed until further notice. This is coming less than a week after President Bola Tinubu nominated Mr Olayemi Michael Cardoso to take over the role from Mr Folashodun Shonubi, who is filling the role following the ousting of Mr Godwin Emefiele, who is currently held in the custody of the

Image
21-September-2023

CCECC Targets Q2 of 2024 for Completion of Abuja Light Rail

By Adedapo Adesanya The China Civil Engineering Construction Corporation (CCECC) Limited has promised to complete the Abuja light rail project in eight months, in line with the determination of President Bola Tinubu’s administration to enhance infrastructure development across the country. The Chinese construction firm gave this assurance after a meeting with the Vice President, Mr Kashim Shettima, at the Presidential Villa in Abuja. Mr Shettima described CCECC as part of Nigeria’s history, saying the Chinese construction giant has played a pivotal role in developing Nigeria’s landmark projects, adding that their commitment to the development of Nigeria and Africa is commendable.

Image
21-September-2023

Houston Texas Mayor Endorses Fidelity Bank’s Trade Expo

By Aduragbemi Omiyale The forthcoming trade expo organised by Fidelity Bank Plc has received the endorsement of the Mayor of Houston Texas, Mr Sylvester Turner. Mr Turner, in a short video, highlighted the several side attractions scheduled for FITCC Houston and encouraged businesses to take advantage of the expo to expand their businesses beyond borders. He described the event as “A catalyst to support bilateral trade between Nigeria and Houston; and an opportunity for the Houston community and the diaspora to explore emerging trends, forge new partnerships and unlock new possibilities.” The Nigerian lender will, on Tuesday, October 24 and

Image
21-September-2023

Unlocking Growth: M&A Opportunities in African VC Space

By Philani Mzila The past 12 months have seen a significant decline in venture capital (VC) funding in Africa. The total amount raised declined by almost 40% between July 2022 and June 2023 compared to the same period between 2021 and 2022. This sharp decline is particularly evident in the “Big Four” markets of Nigeria, Egypt, South Africa, and Kenya, with funding contracting by as much as 77% in some. Due to these challenging market conditions, numerous startups are nearing the end of their financial runway and are struggling to secure further investment. Founders in this situation usually face three

Image
21-September-2023

Truecaller Rebrands, Introduces Search Context Feature

By Aduragbemi Omiyale The popular call identification and blocking app, Truecaller, has changed its identity as part of its rebranding strategy to deliver more quality services to its customers. The firm has changed its logo and app icon and has introduced a new anti-fraud feature called Search Context as a part of its Artificial Intelligence (AI) identity engine. In a statement, Truecaller said the upgraded AI identity features were put in place for fraud prevention, giving customers more value. According to the company, this signifies a renewed and strong focus on consumer privacy and enhanced safety in communication. It stated

Image
21-September-2023

Nollytainment Creates NFT Collection for Nollywood Stars

By Modupe Gbadeyanka To immortalise iconic figures in the Nigerian movie industry fondly called Nollywood, a US-based entertainment outfit, Nollytainment Incorporated, is creating an NFT Collection through Nollywood Superstars NFT Collection. A statement from the organisation said three superstars in the industry have been pencilled down for this and they are Kate Henshaw, Richard Mofe Damijo (RMD), and Odulade Adekola. It was disclosed that the NFT Collection would be unveiled on Sunday, October 1, 2023, a day set aside to celebrate Nigeria’s independence. On that day, 1,000 of these exquisite Nollywood super digital NFTs will be distributed for free to

Image
21-September-2023

Unlisted Securities Index Appreciates by 0.12% to 806.29 Points

By Adedapo Adesanya The NASD Over-the-Counter (OTC) Securities Exchange improved by 0.12 per cent on Wednesday, September 20, with the unlisted securities index expanding by 1.00 points to end the day at 806.29 points as against the 805.29 points it recorded at the previous session. During the trading day, the market capitalisation of the alternative stock exchange increased by N1.42 billion to close at N1.139 trillion compared with Tuesday’s closing value of N1.138 trillion. It was observed that the bulls overcame the bears on Wednesday, with the bourse closing with three price gainers and two price losers. Aradel Holdings Plc