The Securities and Exchange Commission (SEC) has drawn the attention of all capital market operators to some reorganization exercise recently approved by the Commission.
The SEC in a statement obtained by our Correspondent Tuesday said it has embarked on the relocation of Inspectorate Division to the Commission’s Lagos Zonal Office (LZO) in order to ensure a successful implementation of Risk Based Supervision Model and regulation of Systematically Important Financial Institutions in the capital market. In a similar vein, the SEC also relocated its Registration Division to the Lagos Zonal Office (LZO).
The statement further stated that the Commission has considered the need to have enhanced regulatory supervision of all registered Capital Market Operators (CMOs) and available records indicate that more than 90 percent of the operators are based in Lagos.
“In line with this, the Inspectorate Division of the Commission’s Monitoring Department has been moved to the Lagos Zonal office but some staff will be retained at the Head Office to handle some operators from the Northern part of the country. This is aimed at ensuring that the CMOs maintain healthy financial situation and comply with Rules and Regulations guiding the conduct of their respective operations,” the SEC said
The SEC also stated that the relocation of the Registration Division to the Lagos Zonal Office (LZO), is predicated on the fact that the Commission’s revamped registration process has ensured the admission of only persons with excellent credentials to the market.
The SEC therefore explained that “In a bid to leverage on this revamped process and reduce huge financial burden being borne by the CMOs on filing of registration documents or attending registration meetings in Abuja, the Commission has decided to relocate the registration division from its Head Quarters to the Lagos Zonal Office but a unit to cater for operators domiciled in the northern part of the country will reside at the Head office, Abuja.
This relocation would not only reduce the cost of conducting the registration exercise, but also efficiently position the Commission to remain innovative on its registration processes,” it noted
The SEC also embarked on a Merger of Fund Management Division (Investment Management Department) with the Inspectorate Division (Monitoring Department).
According to the commission, the Inspectorate and Fund management Divisions of the Commission perform similar functions of monitoring market operators. While the Fund Management Division monitors the activities of registered Fund Managers, the Inspectorate division supervises other categories of CMOs.
SEC said “To fully optimize the benefits of the Risk Based Supervisory Model, both divisions have been merged and would carry the assigned responsibilities under Inspectorate Division of Lagos Zonal Office.” adding that all capital market operators should take note of this reorganization which became effective on Monday January 16, 2017.
