NSE Suspends Trading In Shares Of RT Briscoe, 7 Insurers


The Nigerian Stock Exchange (NSE), on Thursday announced the immediate suspension of trading in the shares of eight companies, including R.T. Briscoe and seven insurance and related companies.

In a notice to dealing members, the NSE said the action followed the failure of the affected companies to file their financial reports in line with the post-listing Rule 3.1, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers’ Rules) (Default Filing Rules).

The rule provides that; “If an Issuer fails to file the relevant accounts by the expiration of the Cure Period, The Exchange will:

The affected companies include are: R.T. Briscoe, African Alliance Insurance, Cornerstone Insurance, Royal Exchange, STACO Insurance, Standard Alliance Insurance, Universal Insurance Company and Veritas Kapital Assurance.

All eight were suspended and the Securities & Exchange Commission (SEC) informed, after being sent a “Second Filing Deficiency Notification” within two business days after the end of the “Cure Period.”

The NSE added that in accordance with the rules, the suspension “will only be lifted upon the submission of the relevant accounts and provided (and); the Exchange is satisfied that the accounts comply with all applicable rules of The Exchange. This is for your information.”

Recall that on May 30, 2018, the management of Veritas Kapital Assurance, notified its stakeholders of its failure to issue an audited financial statement within extended due date as approved by the NSE.

The financial statement, it added, “is undergoing review of the external auditors and the verge of completion,” which will be followed its submission to the National Insurance Commission (NAICOM), before being sent to the NSE and SEC.

It was anticipated that the financials would be submitted on, or before June 30, 2018, a date that has passed, hence the NSE hammer.

Similarly, Staco Assurance, through Tayo Ajibulu, its executive director, while apologizing in an April 5, 2018 letter to the bourse, it said the 2017 financials had been audited, preparatory to being presented to SEC, while promising to submit it latest by April 30, one month after the 90-day March 31, regulatory window for submission of full-year audited financials given companies with December 31, year-end. However, it never did, obviously.

On its part, directors of Royal Exchange Plc noted that its new status as a holding company with five different subsidiaries as resulted in a situation where the audit exercise for the group is yet to be consolidated and concluded.

The sore thumb, it continued, in a notice by Sheila Ezeuko, the company secretary, is the insurance subsidiary, Royal Exchange Prudential Life Plc, which is yet to receive regulatory approval.

She expressed optimism that the audited financial statements would be submitted to the NSE on, or before May 30, 2018.

Also, in a press release to the exchange, Standard Alliance Insurance, while regretting that it may not be able to submit its 2017 audited result within the regulatory timeframe, blamed the delay on “the recently concluded merger exercise with Standard Alliance Life Assurance Limited which requires an enhanced disclosure of information in the 2017 audited account.

It asked for forbearance until April 30, 2018.

PAC Solicitors, in a letter to the bourse on behalf of Cornerstone Insurance, dated April 5, 2018, asked for extension until May 31 timeframe, blaming unforeseen the delay in concluding the audit process within the stipulated time.”