SEC Hammers 106 Operators over Market Violation
The operators were punished for the offences in 2011. It was gathered that while 28 got outright suspension for violation of various SEC rules, 78 were penalised for non-compliance with the requirements needed to operate in the market.
Although the names of affected operators could not be obtained, sources revealed that 36 operators were penalised for non-rendition of quarterly returns to the commission.
On the other hand, 42 operators were penalised for non-compliance with Anti-money Laundering (AML) and Counter Terrorism Financing (CFT) manual for capital market operators.
“The AML and CTF manual were gazetted last year for market operators through the efforts the Commission and going forward there will be its strict enforcement. This is part of strategies to ensure that the market is attractive for investors without being afraid of being cheated of their hard earned money,” a source said.
The Director-General of SEC, Ms. Arunma Oteh has always stated the determination of the commission to rid the market off inappropriate behaviours. Oteh had said the 2008 market crisis resulted majorly from weak governance and insufficient capacity, which led to improper behaviours and sharp practices.
She had therefore, stated that henceforth SEC would implement its zero tolerance policy in a decisive and far reaching manner to eliminate sharp practices, deter malpractice and change behaviours by ensuring that both the institutional and personal costs of any wrongdoing is extremely high.
Speaking last October, Oteh said the Commission had in the past 22 months invested significant resources in catalysing its transition to a world class capital market.
“In the first instance, we undertook a diagnostic review of the capital market and have been implementing reforms in line with the recommendations of this review .Consequently, we have improved our enforcement regime.
“This has resulted in higher levels of compliance and reduced improprieties. We have strengthened market rules and regulation with the introduction of new rules and the amendment of existing ones. One of such is the introduction of margin guidelines designed to curb excessive risk taking by operators,” she said