SEC reinforces commitment to protecting investors, combating fraud in capital market
…Announces stricter measures to protect investors
The Securities and Exchange Commission (SEC) has reaffirmed its dedication to safeguarding investors in Nigeria’s capital market by intensifying efforts to eliminate fraudulent activities.
According to the Director-General of SEC, Dr Emomotimi Agama, operators engaging in dishonest practices will face severe consequences, as the Commission prioritises the protection of investor interests.
“For us, it is crucial to make people understand that there is no longer any refuge for those intending to defraud Nigerians or exploit investors in this market,” Dr Agama asserted, underlining the Commission’s strict stance on financial misconduct.
He explained that the Investments and Securities Act (ISA) 2007 provides the legal foundation for securities regulation in Nigeria, ensuring that market operators uphold rigorous ethical standards.
Dr Agama also stressed the significance of the “fit and proper person’s test,” a regulatory requirement that mandates operators to meet specific criteria to retain their licences.
“The core principle behind the regulation and registration of securities market operators is embedded in the fit and proper person’s test,” he noted.
He further revealed that the recent revocation of licences, suspension of operators, and enforcement actions against unregistered firms represent just the beginning of a broader crackdown planned for the year.
Dr Agama reassured stakeholders that the SEC will fully utilise its regulatory authority under Nigerian law to deter fraudulent activities, stating, “We firmly believe that an investor who is well-protected is an investor who can confidently participate in the market.”
As part of its enhanced enforcement measures, the SEC has announced the introduction of a “name and shame” journal, designed to publicly disclose Capital Market Operators who breach regulations.
This initiative underscores the Commission’s unwavering approach to maintaining integrity within the capital market and aligns with its broader regulatory strategy.
In a public notice titled “Additional Enforcement Measures on Erring Capital Market Operators,” the SEC outlined its intention to impose stringent sanctions on offenders as a deterrent.
Dr Agama urged both existing and prospective market participants to work alongside the SEC in fostering a transparent and resilient capital market.
He underscored the importance of compliance and information disclosure in achieving this objective, asserting that all stakeholders must recognise and align with the Commission’s responsibilities.
These measures form part of the Commission’s wider agenda for 2025 to eliminate illegal capital market operators and reinforce investor confidence.
