Key Points:
- SEC's Directive:
- The Securities and Exchange Commission (SEC) has mandated all Nigerian fund managers to disclose detailed information about their investments in the recently liquidated Heritage Bank.
- Circular Issued:
- Tarfa Makyur, Head of the Monitoring Department at SEC, sent a circular to the President of the Fund Managers Association of Nigeria on June 14, 2024.
- The circular requires fund managers to submit comprehensive data on their exposure to Heritage Bank by June 30, 2024.
- Impact Assessment:
- SEC is evaluating the potential impact of the Central Bank of Nigeria's (CBN) decision to revoke Heritage Bank’s operating license on the capital market.
- The commission seeks to understand the extent of both proprietary and client funds tied to Heritage Bank.
- Content of the Circular:
- The circular reads, "The commission is currently assessing the potential implications of the Central Bank of Nigeria’s decision to revoke the operating license of Heritage Bank Plc on the capital market.
- In this regard, we kindly request that your members provide detailed information on their level of exposure to Heritage Bank Plc in respect of proprietary funds and client funds.
- Please ensure that this information is submitted to the commission no later than June 30, 2024, via email. The commission appreciates your prompt cooperation and assistance in this matter.”
- Background:
- On June 3, 2024, the CBN announced the immediate revocation of Heritage Bank’s license.
Conclusion:
The SEC's directive to fund managers highlights the regulatory body's proactive approach in understanding and mitigating the repercussions of Heritage Bank’s liquidation on the capital market. The requested disclosures will provide critical insights into the financial exposure of fund managers and help in maintaining market stability.
- SEC's Directive:
- The Securities and Exchange Commission (SEC) has mandated all Nigerian fund managers to disclose detailed information about their investments in the recently liquidated Heritage Bank.
- Circular Issued:
- Tarfa Makyur, Head of the Monitoring Department at SEC, sent a circular to the President of the Fund Managers Association of Nigeria on June 14, 2024.
- The circular requires fund managers to submit comprehensive data on their exposure to Heritage Bank by June 30, 2024.
- Impact Assessment:
- SEC is evaluating the potential impact of the Central Bank of Nigeria's (CBN) decision to revoke Heritage Bank’s operating license on the capital market.
- The commission seeks to understand the extent of both proprietary and client funds tied to Heritage Bank.
- Content of the Circular:
- The circular reads, "The commission is currently assessing the potential implications of the Central Bank of Nigeria’s decision to revoke the operating license of Heritage Bank Plc on the capital market.
- In this regard, we kindly request that your members provide detailed information on their level of exposure to Heritage Bank Plc in respect of proprietary funds and client funds.
- Please ensure that this information is submitted to the commission no later than June 30, 2024, via email. The commission appreciates your prompt cooperation and assistance in this matter.”
- Background:
- On June 3, 2024, the CBN announced the immediate revocation of Heritage Bank’s license.
Conclusion:
The SEC's directive to fund managers highlights the regulatory body's proactive approach in understanding and mitigating the repercussions of Heritage Bank’s liquidation on the capital market. The requested disclosures will provide critical insights into the financial exposure of fund managers and help in maintaining market stability.