SEC Releases Fund Management Products Rules and Regulations in Nigeria

January 27, 2021/SEC Nigeria

1. No person or entity shall operate any product that pools investors’ monies, including discretionary or non-discretionary portfolios/funds except such person or entity is registered as a fund/portfolio manager.
2. No fund/portfolio manager shall develop and operate any product, discretionary or nondiscretionary portfolio/fund without the Commission’s prior approval or ‘no objection’. 
3. No fund/portfolio manager shall advertise, market, or attract investors to the existence of any product, discretionary or non-discretionary portfolio/fund other than registered collective investment schemes.
4. Every fund/portfolio manager shall submit quarterly returns and annual reports in respect of all products, discretionary or non-discretionary portfolios/funds, in a form as determined by the Commission.
5. Any person or entity that contravenes this rule shall be liable to any one or more of the following sanctions –

• A penalty of not less than N500,000 (Five hundred thousand naira) and a further sum of N10,000 (Ten thousand naira) for every day the violation continues in respect of each product, discretionary or non-discretionary fund/portfolio under management;
• Suspension of registration;
• Withdrawal of registration;
• Disgorgement of proceeds/income from the product, discretionary or nondiscretionary portfolio/fund;
• Any other sanction the Commission deems fit in the circumstance.

Click here to read full PDF copy of new Rules and Regulations on Fund Management Products