The Securities and Exchange Commission (SEC) has announced that it successfully brought approximately N2.36 trillion in discretionary and non-discretionary funds under custody. This achievement follows recent updates to the guidelines for Collective Investment Schemes (CIS) in Nigeria’s capital market.
In December of last year, the commission proposed amendments aimed at addressing concerns raised by stakeholders in the CIS segment. These amendments were designed to enhance investor protection within the market.
During a media briefing after the first quarter Capital Market Committee meeting, Dr. Okey Umeano, the Chief Economist at SEC, revealed that the funds in the discretionary and non-discretionary windows were brought under custody as part of efforts to bolster investor protection.
“Before the update to the rules, only the funds categorized as Collective Investment Schemes were placed under custody. However, to further safeguard investors’ interests, we mandated that all funds, including those in discretionary and non-discretionary products, be placed under custody,” Umeano explained.
Following extensive inspections to ensure compliance, SEC reported a total of N2.36 trillion in discretionary and non-discretionary funds under custody by the end of the first quarter. This significant milestone underscores the commission’s commitment to fostering a secure and transparent investment environment.
Former SEC Director-General, Lamido Yuguda, emphasized the importance of separating asset management and custody functions to mitigate risks associated with collapses in entities. With the new regulations, all funds are now mandated to be held by custodians, enhancing trust and protection for investors.
President Bola Tinubu also announced a new board for the commission, appointing Emomotimi Agama as the new Director-General. The SEC board, chaired by Mairiga Katuka, includes experienced professionals dedicated to advancing the commission’s core mandate of developing and regulating a robust and transparent capital market.
The SEC’s efforts to strengthen regulatory frameworks and promote investor confidence are crucial steps towards fostering a resilient and thriving investment landscape in Nigeria.
