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SEC Suspends Two Capital Market Operators

By on April 28, 2013

Two Nigerian stock broking firms- Vision Trusts and Investment Limited and AIMS Asset Management Limited have been suspended from participating in capital market activities by the Securities and Exchange Commission, SEC.

The capital market regulator said the suspension also affected individuals sponsored by the companies. Information published on the website of SEC indicated that Vision Trust and Investment Limited was suspended as a result of its sale of 131, 868 and 44, 400 units of UBA PLC shares belonging to the estate of Animashaun Anjorin without mandate.

SEC indicated that the firm was given several opportunities to restore the shares to the owner, but it failed to do so, hence the suspension.

AIMS Asset Management Limited was suspended for non-refund of the sum of N300, 000 deposited by an investor under a portfolio investment agreement.

According to SEC, the investor had deposited the sum of N300, 000 with the operator under a portfolio investment agreement for a tenor of 3 years. But at the expiration of the period and despite several demands, the operator failed to pay the investor her invested sum and the returns therein.

The firm, according to the capital market regulator invested the investor’s money in the shares of Tetrazzini Foods Limited, a private company whose shares are not traded on the floor of the Nigerian Stock Exchange and which is not regulated by the commission.

This, according to SEC is contrary to the portfolio investment agreement between the operator and the investor.

The commission said its efforts to get the company to resolve the matter was also not successful and therefore was left with no option that to place the firm on suspension.