SEC suspends two market operators

The Securities and Exchange Commission has suspended two market operators for violating regulatory guidelines in their operations.

A circular on the commission’s website identified the firms as International Standards Securities Limited and Woodland Capital Market Plc.

According to the commission, the suspension of both firms is indefinite and shall remain in force pending the resolution of the matter against them.

The commission explained that it suspended ISSL, its directors and sponsored individuals from all capital market activities on March 10, 2015 “in view of its non-compliance with SEC rules and regulations and deficiencies observed in its operation during a target inspection carried out on it recently.”

On the other hand, SEC said it suspended Woodland Capital Market together with its directors and sponsored individuals for the illegal sales of an investor’s shares.

A circular announcing the suspension read, “The Securities and Exchange Commission on Tuesday, March 10, 2015 suspended Woodland Capital Market Plc together with its Directors and Sponsored Individuals in connection with the unauthorised sale of 3,750 units of PZ Plc shares belonging to an investor and its refusal to comply with the commission’s directives in that regard.”

The SEC had recently said that it was working to encourage increased transparency in the market and speedy resolution of disputes.

To achieve the goals, the Acting Director-General, SEC, Mr. Mounir Gwarzo, recently said the commission would review its complaint framework and empower trade groups within the market to handle disputes.

The acting SEC DG explained that the move would enable the commission to concentrate on its core functions of regulating and developing the capital market.

“We have finished the rules on complaints management framework and very soon, it will be exposed. One of the highlights is to allow complaints to be managed at the lower level,” he said when members of the Institute of Capital Market Registrars visited him in January.

In February, he told members of the Assets Custodians of Nigeria that the commission had completed the review of the complaints framework.