The Securities and Exchange Commission (SEC) in a bid to ensure safety of funds for investors has cautioned some fund managers to desist from holding on to client’s funds and securities. According to SEC, such habit would lead to dire consequences.
The Director-General, SEC, Mr Lamido Yuguda, noted that holding on to clients’ funds and securities is a violation of the Commission’s Consolidated Rule 95 (1-2), noting that all funds and securities of clients being managed by their firms must be vested with the custodians.
He explained that the meeting also emphasised the increasing importance of fintech, sustainable finance, financial inclusion and non-interest finance, adding that the executive management team of the SEC reiterated its commitment to continue creating awareness, imparting knowledge and engendering public participation in these topical areas.