The Securities and Exchange Commission (SEC) has, with effect from today, revoked the licences of Fifty-Three (53) Fund Management Companies.
According to SEC, these actions were taken pursuant to Section 122 (2) (b) of the Securities Industry Act, 2016 (Act 929 or “the Act”) which authorizes the Securities and Exchange Commission to revoke the licence of a market operator under a number of circumstances.
The revocation of the licenses of the specified companies has become necessary as they have largely failed to return client funds which remain locked up and in a number of cases, they have even folded up their operations.
According to SEC, essentially, these companies have failed to perform their functions efficiently, honestly and fairly and in some cases are in continuing breach of the requirements under relevant securities laws, rules or conditions, despite opportunities provided to them by the SEC within a reasonable period of time to resolve all regulatory breaches.
