The Security and Exchange Commission, SEC, has unveiled new measures to protect investors, reaffirming its commitment to the safety of Nigeria’s capital market.
According to the Director-General of SEC, Dr. Emomotimi Agama, operators engaging in unscrupulous practices will face strict penalties as the Commission prioritises safeguarding investor interests.
Agama noted that the investment and securities Act 2007 provides the legal framework for the regulation of Nigeria’s capital market, ensuring that operators do business in adherence to high ethical standards.
He emphasized the importance of the “fit and proper person’s test,” which requires operators to meet specific regulatory criteria to maintain their licenses.
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Also, Agama assured stakeholders that the SEC will leverage its regulatory powers under Nigerian law to deter fraudulent activities, noting, “We believe strongly that a protected investor is a powerful investor.”
It will be recalled that the SEC recently unveiled announced additional regulations, including the introduction of a “name and shame” policy to publicly identify Capital Market Operators who violate regulations.
This initiative reflects the SEC’s commitment to upholding high standards in the market while maintaining a zero-tolerance approach to infractions.
In a public notice titled “Additional Enforcement Measures on Erring Capital Market Operators,” the SEC outlined its intent to impose severe penalties on violators as a deterrent.
Dr. Agama called on existing and prospective market participants to collaborate with the SEC to foster the development of a transparent and robust capital market.
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He emphasized that compliance and information disclosure are fundamental to achieving this goal, stating that all stakeholders must understand and align with the Commission’s responsibilities.
