SEC Warns Fund Managers Against Holding Client’s Funds, Securities

The Securities and Exchange Commission (SEC) has warned Fund Managers still in the habit of holding on to clients’ funds and securities to desist from such act or face the wrath of the apex regulator.
The Commission noted that holding on to clients’ funds and securities is a clear violation of the Commission’s Consolidated Rule 95 (1-2).
It reminded Fund Managers that all funds and securities of clients being managed by their firms must be vested with the custodians.
The Director-General of the SEC, Mr. Lamido Yuguda stated this at the Post Capital Market Committee briefing in Lagos at the weekend.
According to a statement by the Head of Corporate Communications of the SEC, Efe Ebelo, the SEC DG also drew the attention of Fund Managers to issues that arose from the Commission’s recently concluded inspection of Fund/Portfolio Management operations whereby several Fund Managers managing Discretionary and Non-Discretionary Products and Portfolios were yet to seek a ‘No Objection’ of their products and portfolios from the Commission, which is a violation of the Commission’s Rules.
Yuguda announced that the e-Dividend Committee notified members of efforts to rebuild the E-Dividend Management Mandate System (e-DMMS) platform.
This, he said, involves having a centralized submission of E-dividend mandate forms, Application Programming Interface (API) for Banks and Registrars, and a revamped web interface among others.
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