The Securities and Exchange Commission (SEC) has said that persons whose actions and inactions resulted in the collapse of Fund Management Companies in the country will be banned from operating in the Capital Market for five (5) years.

The Commission said the indicted persons could include past officers and shareholders of the affected companies.

Some 53 Fund Management Companies had their licenses revoked by the SEC on Friday as part of processes to sanitize the sector.

The action comes after several complaints about the failure of some fund managers to pay customers their monies.
SEC said persons who were found to have engaged in criminal behaviour, leading to the revocation of the licenses, will also be made to face the law.

“The SEC will ban past and present officers and shareholders whose actions and inactions led to the revocation, from operating in the Capital Market for 5 years. In cases of alleged criminal behaviour the SEC will forward evidence to the Attorney General for further investigation and prosecution,”

SEC said on its website.

Meanwhile, SEC has said that its authorized agents will secure the premises of the affected companies for further investigations under section 26 of the Act.

Credit: citibusinessnews

(By Jonas Nyabor)