The Securities and Exchange Commission, SEC says effective October 1, 2019 it has paused the issuing of new Fund Management Licenses till March 2020.
A statement issued on Tuesday by SEC said, “The SEC shall, however, continue to review applications for renewals for existing Fund Management Licencees and new market products.”
According to Exchange Commission the decision to suspend issuance of new license is to enable it to focus on the following:
• A thorough review of the current licensing regime for a stronger and a more efficient and resilient market and the introduction of new licensing guidelines and directives
• A resolution of the current challenges facing the securities industry and the capital market
• The Introduction of new products in the capital market to deepen the existing market and to provide more investment options for investors and the general public
• A thorough overhaul of the SEC’s activities
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“The Commission wishes to assure all market operators, investors and the general public that it is committed to ensuring rigorous enforcement of all the rules for operators in the capital market in order to promote the growth and development of an efficient, fair and transparent securities market in which investors and the integrity of the market are protected,” the statement added.
In a related development, The Securities and Exchange Commission is undertaking a forensic audit of about 21 investment firms and fund managers in the country.
The audit is to allow the regulator to have a fair idea of the financial positions of these firms as well as their ability to stay in business.
However, the Commission for some time has come under criticism for lack of an effective mechanism to deal with non-performing investment firms and dealers in the country.
