The Securities and Exchange Commission (SEC) has introduced a new “Name and Shame” journal to publicly expose non-compliant market operators, as it suspends Centurion Registrars Limited and cancels the registration of Mainland Trust Limited for failing to adhere to regulatory standards.
SEC on Sunday, Nigeria’s capital market regulator, announced strict enforcement measures to maintain market integrity.
As part of its crackdown, the regulatory body suspended Centurion Registrars Limited, its directors, and sponsored individuals and revoked Mainland Trust Limited’s registration as a capital market operator in the country.
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SEC’s new enforcement strategy
To reinforce compliance, the Commission disclosed that capital market operators who violate stipulated laws and regulations will have their names published in its newly introduced “name and shame” journal.
“The Commission is committed to upholding the integrity of the capital market and ensuring investors’ protection,” the SEC stated. “This measure is in addition to the prescribed penalties under the Investments and Securities Act (ISA) 2007 and the SEC Rules and Regulations.”
In the public notice, the body further announced the immediate suspension of Centurion Registrars Limited, along with its directors and sponsored individuals. The move was taken under Section 38(4) & (5) of the ISA 2007 and Rule 34(1)(e) of the SEC Consolidated Rules and Regulations 2013.
“The decision follows the company’s failure to comply with regulatory directives and resolve multiple complaints,” SEC noted.
Affected clients of Centurion Registrars Limited have been directed to contact Africa Prudential Plc for assistance in transferring their portfolios to another registrar of their choice.
Furthermore, entities such as the Nigerian Exchange Group (NGX), the Institute of Capital Market Registrars (CMR), and the Central Securities Clearing System (CSCS) have been instructed to halt dealings with the company and its principal officers.
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Mainland Trust Limited Registration cancelled
Additionally, the Commission revoked the registration of Mainland Trust Limited due to regulatory non-compliance and unresolved complaints.
“All clients of Mainland Trust Limited should liaise with the Central Securities Clearing System (CSCS) for guidance on transferring their stocks to a preferred stockbroker,” the SEC advised.
Market regulators, including NGX and the Chartered Institute of Stockbrokers (CIS), have been directed to sever capital market dealings with the firm.
The SEC reiterated its zero-tolerance stance on market infractions, emphasising that these measures reinforce its mission to safeguard the nation’s capital market and protect investors.