Nigeria’s Securities and Exchange Commission (SEC), on Sunday announced the Cancellation of the Registration of Mainland Trust Limited, just as it suspended Centurion Registrars, citing separate circulars issued at the weekend.
The commission said the sanctions were imposed following the failure of both firms to comply with regulatory directives.
Announcing the immediate cancellation of the registration of Mainland Trust Limited as a capital market operator, the SEC noted that the order was made pursuant to its powers “under Section 38(4) of the Investments and Securities Act, 2007and Rule 34(1)(e) of the SEC Consolidated Rules and Regulations 2013.
“The Commission’s decision is informed by the company’s failure to comply with regulatory directives and non-resolution of several complaints against it,” it added.
All clients of the company were therefore directed “to contact the Central Securities Clearing Systems Plc (CSCS) for appropriate guidance on the transfer of their stocks to another stockbroker of their choice.”
The circular further directed “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… to discontinue capital market related dealings with the company.”
The order suspending Centurion Registrars Limited, its Directors and sponsored individuals from Capital Market activities with immediate effect, the SEC said was similarly made pursuant to its powers under relevant sections of the ISA 2007 and Rule 34(1)(e) of the SEC Consolidated Rules and Regulations 2013 and “informed by the company’s failure to comply with regulatory directives and non-resolution of several complaints against it.
Consequently, the commission directed “all clients of Centurion Registrars Limited… to contact Africa Prudential Plc for appropriate guidance on the transfer of their portfolios to another Registrar 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 Association are directed to discontinue capital market related dealings with the company and its principal officers,” the circular said.
The Commission also informed stakeholders and the general public that henceforth, in furtherance of its unwavering commitment to the maintenance of a zero tolerance for infractions in the Nigerian Capital Market and in line with its revised enforcement strategies, “names of Capital Market Operators (CMOs) found to have violated market laws/regulations would be published in the Commission’s “name and shame” journal.
Continuing, it said “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.
“This enforcement strategy underscores the Commission’s dedication to safeguarding the integrity and stability of the Nigerian capital market, protecting investors, and ensuring strict adherence to established rules and regulations.
“Stakeholders and CMOs are advised to be guided accordingly” the commission stressed.
