SEC suspends 34 stockbrokers for alleged default in reporting requirements

 

THURSDAY, 15 JULY 2010 BY MOSES EBOSELE    

 

The Securities and Exchange Commission (SEC) has suspended the operating licences of 34 stockbrokers for allegedly defaulting in the commission’s statutory reporting requirements.Director-General of SEC, Arunma Oteh, explained yesterday that the suspension would not be lifted until the affected stockbrokers comply with all the necessary statutory mandates.

 

The suspension is coming barely three months after SEC dispatched letters of queries to some stockbroking firms for allegedly indulging in unethical practices.Oteh explained in an interview with The Guardian yesterday, that some of the stockbrokers are “currently engaging with SEC”, adding that “for the others, SEC will eventually seek revocation of their licences”.

 

Between January and April, this year, SEC penalised 92 capital market operators for allegedly violating the money laundry act.The 92 capital market operators were apprehended during onsite inspection carried out on selected operators in February this year, while 390 others were to be penalised for various other offences.

 

Out of the 390 alleged violators, 221 failed to submit their yearly account, while 169 others submitted late.The commission has also received 220 new complaints ranging from unauthorised/fraudulent sale and purchase of shares to falsification of clients’ accounts.Speaking at a policy dialogue recently, Oteh said: “I am shocked at the alleged insider dealings. As we move forward, this kind of thing will never happen again.

 

“When sanctions are a ‘slap on the wrist’, they become incentive to violate. Our enforcement regime would also be that which attract the confidence of participants in its process and outcome.“You will agree with me that the work of the criminal law enforcement agencies is extremely important in the investigation and prosecution of criminal cases. Successful prosecution of such cases will undoubtedly serve as deterrence and reduce criminal practices in the market”.

 

(Source:Guardian)

 

 

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