Home / Business and Economy / SEC suspends BGL from capital market, deregisters Okumagba

SEC suspends BGL from capital market, deregisters Okumagba

Chief Peter Obi, President, SEC
Chief Peter Obi, President, SEC

 

The Securities and Exchange Commission (SEC) has suspended the BGL Asset Management Ltd, BGL Capital Ltd and BGL Securities Ltd from all capital market activities.

In a statement in Lagos, Wednesday, the Commission directed that Mr Albert Okumagba, Group Managing Director, BGL Group, should cease to be a registered sponsored individual with the commission, following the withdrawal of the registration of BGL Plc as a capital market operator.

The statement disclosed that all suspicious transactions observed in the course of the investigation had been referred to the appropriate law enforcement agencies for further investigation, just as it stated that BGL Asset Management, BGL Capital and BGL Securities and all individuals involved in the management of the said companies had been referred to the SEC Administrative Proceedings Committee (APC).

The statement said that the suspension was a fall out of the commission’s Executive Management Committee meeting held on May 19 which considered the report of a detailed investigation into the various complaints received from investors against subsidiaries of BGL Group.

“All sponsored individuals of BGL Asset Management , BGL Capital and BGL Securities whose particulars are contained in the commission’s record as at December 2014 be suspended from performing any capital market activity,” according to the statement.

Okumagba prior to the investigation was the President, Chartered Institute of Stockbrokers (CIS) but was asked to step aside by the institute because of investors’ confidence.

Mr Mounir Gwarzo, SEC Director-General, in April said that the commission was investigating the operations of BGL Plc, a financial services company, adding that the commission had also set up an interim management team to investigate the company’s operations.

“What we did for BGL was basically extending our investigation process. We undertook target inspection of BGL, when we finished the investigation, we came up with our own report and we wrote them a letter and we said we wanted them to clarify.

“They responded by asking us for additional time to respond and we granted them that additional time and they responded. We reviewed their response and we felt there is a need for us to go in and confirm or clarify certain things. That is the situation we are in now,” Gwarzo said.

He said that the findings of the interim management team would determine its next line of action.

“We set up an interim management team that has already moved in and is doing its job and I don’t want to pre-empt what they will come up with. But the moment they finish the report, SEC will look at it and take the next line of action,” Gwarzo said.

The interim management team set up for BGL by SEC was headed by Mr Oladipo Aina, with Mr Abubakar Ambursa, Mrs Hafsat Rufai, Ms Temitayo Siyanbola and Ms Tonne Ladipo-Ajayi as members.

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