The Securities and Exchange Commission has cancelled the registration of Mainland Trust Limited and suspended Centurion Registrars Limited for failing to comply with regulatory directions.
In separate circulars released over the weekend, the SEC said that the actions were taken in response to outstanding complaints and regulatory violations by the two firms.
The Commission’s circular on Mainland Trust Limited states: “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.
“This cancellation order is made pursuant to the powers of the Commission under Section 38(4) of the Investments and Securities Act, 2007, and Rule 34(1)(e) of the SEC Consolidated Rules and Regulations 2013.
“The Commission’s decision is informed by the company’s failure to comply with regulatory directives and non-resolution of several complaints against it.”
As a result, all clients of Mainland Trust Limited have been advised to contact Central Securities Clearing Systems Plc (CSCS) for guidance on transferring their stocks to another stockbroker of their choice.
Additionally, SEC has directed the Nigerian Exchange Group (NGX), the Institute of Capital Market Registrars (ICMR), the Chartered Institute of Stockbrokers (CIS), the Central Securities Clearing System (CSCS) Plc, and all Capital Market Trade Associations to discontinue any capital market dealings with the company.
Similarly, SEC announced the suspension of Centurion Registrars Limited, including its directors and sponsored individuals, from participating in capital market activities with immediate effect.
SEC stated, “The suspension order is made pursuant to the powers of the Commission under Section 38(4) & (5) of the Investments and Securities Act, 2007, and Rule 34(1)(e) of the SEC Consolidated Rules and Regulations 2013. The Commission’s decision is informed by the company’s failure to comply with regulatory directives and non-resolution of several complaints against it.”
Affected clients have been advised to contact Africa Prudential Plc for assistance in transferring their portfolios to another registrar.
As part of the enforcement action, SEC has directed NGX, ICMR, CIS, CSCS Plc, and all Capital Market Trade Associations to cut ties with Centurion Registrars and its principal officers.
Reaffirming its zero-tolerance policy for infractions, SEC disclosed that the names of Capital Market Operators who violate market regulations would be published in its “name and shame” journal.
“The release will serve as an extension to the penalties and sanctions outlined for the relevant violations set forth in the ISA 2007 and the SEC Rules and Regulations.”
The SEC highlighted that this approach to enforcement is designed to safeguard investors, uphold the integrity of the market, and guarantee adherence to capital market regulations.
“Stakeholders and CMOs are encouraged to take note and act accordingly,” it stated.
