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SEC revokes 84 licences of inactive Capital Market operators

By on December 22, 2015

In confirmation of THISDAY report last Wednesday, the licences of 84 capital market operators (CMOs) have been revoked by the Securities and Exchange Commission (SEC). The commission had given December 4, 2015, as deadline to 94 inactive CMOs that were registered for various functions in the Nigerian capital market.

According to SEC, the 94 CMOs “have consistently failed to render their statutory returns to the commission and may have been unable to comply with the new minimum capital requirements before the deadline stipulated by the commission which expired on 30th September, 2015.”

Based on the above, SEC directed the affected CMOs to make presentations to the Commission, on or before 4th December, 2015, giving reasons why their registration as CMOS should not be cancelled.

THISDAY had last Wednesday, reported that at the expiry  of the deadline only 15 out of the 94 responded to the commission’s directive. At the end of the review of the presentations made by 15, only 10 were found tenable.  Consequently, the licences of 84 were revoked.

SEC said in a statement on its website at the weekend that  it is  empowered under section 30 (1) and (2) of the Investment and Securities Act (ISA) 2007 to revoke the operational license of capital market operators that are inactive.

Hence the revocation of  84 inactive CMOs. They include: brokers/dealers; venture capital managers; issuing houses; portfolio managers, rating agencies and trustees.
Some of the CMOS are: AiQ Venture Capital Fund Managers Limited(private equity fund manager;    Allbond Investment Limited(broker/dealer); Amalgamated Capital Funds Limited(venture capital manager);Associated Investment Trust Company  Limited(fund/portfolio manager); Bayhead Alpha Capital Limited(fund/portfolio manager);Bluebird Capital Limited(issuing house); Citi Asset Management Limited(fund/portfolio manager); Citizens Investment and Securities Limited(venture capital manager); De-canon Investment Limited(broker/dealer);DVCF  Oil & Gas Plc (venture capital and fund manager); Equinox Asset Management Limited(corporate investment adviser, portfolio manager); Express Discount Limited(fund/portfolio manager, corporate investment adviser); First Marina Trust Limited(broker/dealer).

Others include: Global Capital Market Limited (issuing house); Integrated Capital Services Limited (issuing house); Kendall Securities Limited (broker/dealer); Prudential Securities Limited (broker/dealer);  Securities Solutions Limited(broker/dealer); Wizetrade Capital & Asset Management Limited    (broker/dealer) and Zuma Securities Limited(broker/dealer).

Apart from these active CMOs that have lost their registration, more operators are to lose their licences early next year as the Commission concludes the final list of operators who complied with recent recapitalization exercise.

The compliance deadline expired September 30, 2015 while SEC released a provisional list showing that 437 operators met the capital requirement.

However, the final list of the CMOs that have complied with the minimum capital requirement would be made public soon. THISDAY had reported that preparatory to releasing the final list, SEC had enlisted the services of over 15 accounting firms to verify the sources of funds which the market operators complied with the new minimum capital requirement. The reports of the 15 accounting firms are being reviewed by  the three audit firms and the final list would be out soon.

 

[ThisDay]