SECURITIES AND EXCHANGE COMMISSION (SEC) UNCOVERS EFFORTS TO TACKLE UNCLAIMED DIVIDENDS
Key Issue: Unclaimed Dividends
- Total Unclaimed Dividends: The unclaimed dividends currently stand at N215 billion.
- Commitment: The Securities and Exchange Commission (SEC) is committed to resolving the issue through advanced technology solutions and improved stakeholder engagement.
SEC's Strategy and Initiatives
1. Technology Deployment:
- Self-Service Portal: SEC is introducing a self-service portal that will allow investors to access their dividends in real-time.
- Mobile App: An upcoming mobile app will facilitate efficient resolution of challenges related to unclaimed dividends.
2. Stakeholder Collaboration:
- Registrars and Financial Institutions: SEC is working closely with these entities to streamline dividend payouts.
- Specialised Committee: A committee has been established to oversee the resolution of unclaimed dividends and ensure compliance among market operators.
3. Investor Protection:
- Focus on Root Causes: The committee will identify and address the root causes of dividend payout delays.
- Zero-Tolerance for Fraud: SEC is taking decisive action against fraudulent schemes, evidenced by the recent conviction of a Ponzi scheme operator.
Initiatives to Engage Younger Generation
- Podcasts and Educational Apps: SEC plans to develop podcasts and educational apps to attract the younger generation to the capital market.
- NYSC Engagement: SEC will engage National Youth Service Corps (NYSC) members to promote financial literacy and capital market awareness.
Market Growth and Innovation
1. Company Listings:
- Promotion of Listings: SEC aims to encourage more companies to list on Nigerian exchanges, supporting the Federal Government’s $1 trillion economy target.
- Market Liquidity: By promoting listings, SEC expects to enhance market liquidity and attract new investors.
2. Green Finance:
- Adoption Push: SEC is pushing for increased adoption of green finance, recognizing its potential for long-term economic growth and responsible investment practices.
3. Capital Market Progress in 2024:
- New Issuances: SEC has approved nine new issuances worth N1.228 trillion.
- Mutual Funds Growth: The net asset value of registered mutual funds grew by 111.08% to N3.335 trillion, indicating strong and sustainable growth.
Commitment to Regulation Enhancement
- Investor-Centric Regulation: SEC is dedicated to enhancing regulations to better serve investors in the capital market.
- Continuous Improvement: SEC remains focused on making the regulatory environment more effective for investors.
Key Issue: Unclaimed Dividends
- Total Unclaimed Dividends: The unclaimed dividends currently stand at N215 billion.
- Commitment: The Securities and Exchange Commission (SEC) is committed to resolving the issue through advanced technology solutions and improved stakeholder engagement.
SEC's Strategy and Initiatives
1. Technology Deployment:
- Self-Service Portal: SEC is introducing a self-service portal that will allow investors to access their dividends in real-time.
- Mobile App: An upcoming mobile app will facilitate efficient resolution of challenges related to unclaimed dividends.
2. Stakeholder Collaboration:
- Registrars and Financial Institutions: SEC is working closely with these entities to streamline dividend payouts.
- Specialised Committee: A committee has been established to oversee the resolution of unclaimed dividends and ensure compliance among market operators.
3. Investor Protection:
- Focus on Root Causes: The committee will identify and address the root causes of dividend payout delays.
- Zero-Tolerance for Fraud: SEC is taking decisive action against fraudulent schemes, evidenced by the recent conviction of a Ponzi scheme operator.
Initiatives to Engage Younger Generation
- Podcasts and Educational Apps: SEC plans to develop podcasts and educational apps to attract the younger generation to the capital market.
- NYSC Engagement: SEC will engage National Youth Service Corps (NYSC) members to promote financial literacy and capital market awareness.
Market Growth and Innovation
1. Company Listings:
- Promotion of Listings: SEC aims to encourage more companies to list on Nigerian exchanges, supporting the Federal Government’s $1 trillion economy target.
- Market Liquidity: By promoting listings, SEC expects to enhance market liquidity and attract new investors.
2. Green Finance:
- Adoption Push: SEC is pushing for increased adoption of green finance, recognizing its potential for long-term economic growth and responsible investment practices.
3. Capital Market Progress in 2024:
- New Issuances: SEC has approved nine new issuances worth N1.228 trillion.
- Mutual Funds Growth: The net asset value of registered mutual funds grew by 111.08% to N3.335 trillion, indicating strong and sustainable growth.
Commitment to Regulation Enhancement
- Investor-Centric Regulation: SEC is dedicated to enhancing regulations to better serve investors in the capital market.
- Continuous Improvement: SEC remains focused on making the regulatory environment more effective for investors.