SUIT NO. FHC/MN/CS/14/08
The Commission is the defendant in the above mentioned matter which has been filed at the Federal High Court Minna, Niger State. The Plaintiff had applied to the Commission for registration as a Fund/Portfolio Manager, subsequent upon which an application fee of N5,000 was paid to the Commission. The Commission availed the Company with the registration requirements as contained in Rule 37(1) of the Rules and Regulation which among others included the audited accounts/statement of affairs and profit of the Company.
The Company was also required to pay N100,000 as registration fee and also show evidence of minimum paid up capital of N500 million. The Company went ahead and commenced business as Fund/Portfolio Managers before meeting up with the Commission’s requirements thereby operating illegally as a fund manager.
The Company feels aggrieved by the Commission’s publication in the “Nation” newspaper of February 12, 2008 stating that the Company is an illegal operator acting without authorization. They alleged further that as a result of the publication, the Plaintiff has lost customers and they have had to close down, so they are unable to meet up with the registration requirements. The Plaintiffs are seeking the following reliefs:
1. A Declaration that in so far as the 1st Defendant’s requirement for registration as Fund/Portfolio Manager includes submission of latest audited accounts/statement of affairs of the Plaintiffs business preceding the registration is not illegal.
2. An Order restraining the Commission from interfering with the business activities of the Plaintiff as a Fund/Portfolio Manager on the ground of non-registration.
3. An Order directing the Commission to retract its earlier publication in a daily newspaper that the Plaintiff is an illegal operator in the capital market.
Source: Securities & Exchange Commission Nigeria (SEC)