SEC NIGERIA PROPOSES NEW AMENDMENTS TO ITS RULES

The Security and Exchange Commission of Nigeria (SEC NIGERIA) today August 22, 2017 published proposed new set of rules or changes to existing rules and regulations to which stakeholders are expected to respond to within two weeks.

The new rules and regulations affect specialised funds and schemes; investment advisory services; Nominee accounts; Demutualisation of securities exchange in Nigeria; portfolio and fund management; book building and the commision's code of corporate governance.

For example, the new rules and regulations on specialised funds cover eligibility, primarily, says SEC, "To expand the investment universe of specialised funds /schemes and distinguish them from traditional mutual funds by allowing for selection/inclusion of riskier assets and providing for diversification across a broader spectrum .."

It provides for foreign market due diligence review report to be undertaken by fund managers where appropriate showing risk and return profile of the proposed fund, of its issued and the fund managers risk management strategy.

It also defines to whom such fund schemes should be offered, says they can not be sold publicly but may be through registered over the counter (OTC) exchanges.

The new rules also touch on disclosure requirements about such funds including borrowing limits and duties and responsibilities of the fund managers.

The new rules on advisory services cover attitude to code of ethics for investment advisers and capital market operators; fiduciary duties to clients, disclosure to clients; records to be kept and minimum qualification needed to be the representative of a registered investment adviser.

All investment advisers are, of course, to be registered by SEC except insurance companies registered to advice or promote insurance products; except too pension advisers duly registered to deal in pension products and except "persons giving general comments in good faith in regard to trends in the financial securities market and economic situation where such comments do not specify any particular securities or investment product".

The new rules also clarifies who a retail investor is as against institutional investors and High networth investors.

The suggested change to the code of corporate governance deletes provision for SEC notification to defaulting companies pointing out remedies for default. SEC believes that provision is not necessary since the code is mandatory and noncompliance attracts sanctions.

Stakeholders arulessownload the proposed rules and regulations , divest then respond to them within two weeks through email rulescommittee@sec.gov.ng or through the Director General of SEC.

Comments

Post a Comment

Popular posts from this blog

2018: TWO BLOWS TO UNITED CAPITAL PLC.

When a child who in a previous examination scored 80%, comes home with a new report in which he now scores 67.2%, the parents have a right to sit him down and ask how come. So it must be between Nigeria's United Capital Plc and its discerning shareholders since the release of the company's 2018 audited figures. In 2018, all said and done, says the annual report, United Capital ended with 67.2 % profit margin compared to 80.2% in 2017. How come? What comes across from the figures was that the company received 2 blows to the jugular in 2018: Sharp drops in Investment income and fair value gain. Investment income dropped by 10.8% to N4422.8m from N4965.2m while fair value on financial assets plunged by 79.7% to N6.173m from 2017's N30.387m. In view of both drops, the group's gross earnings grew by only 33.9% to N9259.4m despite strong growths in net trading income, and net operating income leap to N757.5m from N143.5m  Other income streams ended with single digit increase....
Read more

KENYA AUCTIONS Ksh 13.84bn Treasury Bonds.

The Central Bank of Kenya (CBK) will from Tuesday December 18 to 27th 2018_ auction Ksh 13.84bn worth of fixed income Treasury Bonds with issue date December 17, 2018. According to official statement from the Director of Financial Markets Irene Njiru on Monday December 17, auction will continue throughout the stated period or close once the target money to be raised is reached, whichever comes first. Bid value will be paid for at most by 2pm December 31, 2018 while auction results will be made public on December 28, 2018 after the scheduled closing date. The bonds are being issued at 12.502% fixed interest at an adjusted average price of Ksh 100.468 for Ksh 100 bond. However, price payable after auction results publication will be average of successful bid prices based and allotment will be on first come first served basis. Meanwhile, the monetary operations and debt management department has released the interest payment schedule for 13 Treasury Bonds due January and February 2019. Th...
Read more

NAIROBI SE's HIGH PRICED EQUITIES.

In the wake of Nigeria's high priced quoted companies posted in this blog a while ago, Henates took a look to at Nairobi Securities Exchange June 23 official list to identify its high priced equities and the outcome was interesting too. Of the 66 companies quoted on the market by June 23, 15 or 22.7% were valued averagely at above 30 times nominal value. A word of caution though: There are two clear differences between the Nigerian stock market list and that of Nairobi: In the Nigerian one most listed companies have par or nominal value of N0.50 as is there is an implied agreement on this. On the other hand, at Nairobi most of the equities do not share common par value, they differ greatly. Then another thing, Nigerian equities are not valued below par, Nairobi ones can and many are so valued. Of the top 15 high priced equities at the Nairobi market, Safaricom topped with because by June 23, at 23.25 Ksh average price, it was valued 465 times its nominal value of just 0.0...
Read more