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Monday, May 27, 2019 / 05.00PM
/ SEC Nigeria
The Securities and Exchange Commission, SEC, has
warned some Operators in the Capital market to desist from unethical practices
that could lead to strict regulatory actions in accordance with the rules and
regulations of the Commission.
The Commission in a statement on Monday, said its
attention has been drawn to an emerging trend of unethical conduct by Brokers,
Issuing Houses/Book Runners and other Receiving Agents in primary and secondary
market transactions.
The SEC said the concerned operators carry out their
activities by inducing investment through the sharing of brokerage fees
or receiving agents commission with private banking officers, asset/fund
managers, PFA’s and other institutional investor classes who are not duly registered
or recognized by the Commission as being eligible to be paid commission.
According to the SEC, “Notice is hereby issued that
only capital market operators duly registered by the Commission are eligible to
be paid brokerage fee/receiving agents’ commission and such Operators shall not
pay or offer a percentage of the commission earned from services provided in a
transaction as an incentive for investment.
“Any capital market operator found to engage in this
practice or similar acts shall be subject to strict regulatory actions in
accordance with the rules and regulations of the Commission.
The SEC therefore enjoins the public to utilize
the Commission’s whistle blowing mechanism to provide information on any known
or suspected case for necessary action.
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