The Securities and Exchange Commission (SEC) has intensified its regulatory enforcement in Nigeria’s capital markets by cancelling the registration of Mainland Trust Limited and suspending Centurion Registrars Limited alongside its directors and sponsored individuals.
The crackdown follows repeated non-compliance with regulatory directives and unresolved complaints against the firms.
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In a public notice on Sunday, the SEC also announced the introduction of a “name and shame” policy, under which the names of capital market operators (CMOs) found to have violated regulations will be published in a dedicated journal.
The initiative, part of revised enforcement measures, aims to safeguard market integrity and protect investors.
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Revoked licence
SEC says it has revoked the licence of Mainland Trust Limited, a capital market operator, with immediate effect.
According to the commission, the decision was made under Section 38(4) of the Investments and Securities Act, 2007, and Rule 34(1)(e) of the SEC Consolidated Rules and Regulations, 2013.
The regulator cited the company’s failure to comply with regulatory directives and its inability to resolve multiple complaints as grounds for the cancellation.
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Clients of Mainland Trust Limited have been advised to contact the Central Securities Clearing Systems Plc (CSCS) for guidance on transferring their stock holdings to another stockbroker of their choice.
“In addition, the Nigerian Exchange Group (NGX), the Institute of Capital Market Registrars (ICMR), the Chartered Institute of Stockbrokers (CIS), the Central Securities Clearing System (CSCS) Plc and all Capital Market Trade Associations are directed to discontinue capital market-related dealings with the company,” it said.
Centurion Registrars suspended
In a separate notice, the SEC suspended Centurion Registrars Limited, including its directors and sponsored individuals, from all capital market activities.
The regulator invoked Sections 38(4) and (5) of the Investments and Securities Act, 2007, citing similar violations related to unresolved investor complaints and non-compliance with market rules.
“All clients of Centurion Registrars Limited are advised to contact Africa Prudential Plc for appropriate guidance on the transfer of their portfolios to another Registrar of their choice,” it said.
The SEC also ordered capital market institutions to cease any dealings with Centurion Registrars and its principal officers.
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“Name and Shame”
As part of its revised enforcement strategy, the SEC will now publish the names of defaulting CMOs in an official “name and shame” journal.
The initiative is designed to deter misconduct and reinforce regulatory compliance.
“In furtherance of the Commission’s unwavering commitment to the maintenance of a zero tolerance for infractions in the Nigerian Capital Market and in line with its revised enforcement strategies, stakeholders and the general public are hereby informed that henceforth, the names of Capital Market Operators (CMOs) found to have violated market laws/regulations would be published in the Commission’s “name and shame” journal.
“The publication would be in addition to the sanctions/penalties for the respective infractions prescribed in the ISA 2007 and the SEC Rules and Regulations,” the SEC stated.
SEC said its enforcement measures are meant to uphold Nigeria’s capital market’s integrity and stability, protect investors, and ensure strict adherence to established rules and regulations.
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