The Securities and Exchange Commission (SEC) has announced that it has commenced implementation of 100 per cent custody requirement in the Collective Investment Schemes (CIS) sector to protect investors.
The Director-General of the SEC, Mr Lamido Yuguda said this in a statement issued on Sunday, in Lagos.
READ ALSO:Indiscriminate waste dumping: Lagos vows to sanction dirty market operators
Yuguda said the custody requirement covered all Funds and Portfolios being managed by registered Fund/Portfolio Managers.
He explained that all clients’ assets managed under discretionary and non discretionary mandates were to be held under independent custodial agreement and custodial banks.
According to Yuguda, this was in addition to CIS, Mutual Funds, authorised for public offering.
Yuguda said that although it was a natural operational requirement of CIS, the SEC was having some new enforcement and insistence on the compliance that has been in the books, but have not…
Source: Vanguard Newspaper