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The Securities and Exchange Commission (SEC) has revoked the registration of Mainland Trust Limited and imposed an indefinite suspension on Centurion Registrars Limited, along with its directors and sponsored individuals, barring them from all capital market activities.
These regulatory actions, announced in two separate circulars over the weekend, reflect the SEC’s firm stance against persistent non-compliance and unresolved client complaints involving the two firms.
In its circular on Mainland Trust Limited, the SEC stated that the company’s registration was revoked under Section 38(4) of the Investments and Securities Act (ISA) 2007 and Rule 34(1)(e) of the SEC Consolidated Rules and Regulations 2013.
“The Securities and Exchange Commission hereby notifies the general public that the registration of Mainland Trust Limited as a capital market operator has been cancelled with immediate effect,” the notice stated.
The Commission cited the company’s failure to adhere to regulatory directives and its inability to resolve several outstanding complaints lodged by clients as the reasons for the cancellation.
Clients of Mainland Trust Limited have been advised to approach the Central Securities Clearing Systems Plc (CSCS) for guidance on how to transfer their stocks to another stockbroker of their choice.
In addition to terminating the firm’s registration, SEC has directed all market institutions and associations including the Nigerian Exchange Group (NGX), the Institute of Capital Market Registrars (ICMR), the Chartered Institute of Stockbrokers (CIS), and the CSCS to cease all capital market-related transactions with Mainland Trust Limited.
In another development, the SEC also announced the suspension of Centurion Registrars Limited. The order, which affects the company, its directors, and sponsored individuals, was issued with immediate effect.
SEC stated that Centurion Registrars Limited had similarly failed to comply with regulatory instructions and had unresolved complaints against it.
This suspension, according to the Commission, was enacted under the powers granted by Sections 38(4) and 38(5) of the ISA 2007 and Rule 34(1)(e) of the SEC Rules.
Affected clients have been instructed to contact Africa Prudential Plc for assistance in transferring their investment portfolios to an alternative registrar.
As part of the enforcement action, SEC has mandated the NGX, ICMR, CIS, CSCS Plc, and all Capital Market Trade Associations to cease dealings with Centurion Registrars Limited and its principal officers.
The Commission also made it known that it is intensifying efforts to maintain a strict regulatory environment in the Nigerian capital market.
As part of a revised enforcement strategy, SEC announced that going forward, the names of capital market operators found to have violated market laws and regulations will be published in a “name and shame” journal.
The publication, according to SEC, will be in addition to existing sanctions and penalties stipulated in the Investments and Securities Act 2007 and the SEC Rules and Regulations.
This move, the Commission stated, aims to uphold the integrity and stability of the capital market while ensuring that investors are protected and market participants remain compliant with the rules.
The SEC called on all stakeholders and capital market operators to take note of these developments and act accordingly.
