Ensure you meet obligations due investors – SEC to Fund and Assets managers

The Securities and Exchange Commission (SEC) has instructed Fund and Assets managers to institute measures to meet obligations due their clients.

The Commission in a statement on Thursday directed that this should be consistent with the terms and conditions of the investment contracts signed with them.

The directive comes at a time that there are reports that some investors are struggling to redeem their investments.

According to a recent report by Bloomberg, about $1.6 billion investments have been locked up, which is partly linked to the recent banking clean up and its aftershocks.

Assurance from SEC

But the Securities and Exchange Commission maintains that there is no need for panic withdrawals as it is committed to ensuring a sound, efficient and robust market where investors funds are protected.

It added that “there are well run sound Assets and Fund managing firms that are still in business”.

The Commission is also advising investors to also test the soundness of these investments by asking the fund managers these questions; regarding their governance practices, track record, staff turnover any unresolved complaints and regulatory breaches.

SEC is also asking investment pubic to director all unanswered questions to the toll-free line 0800100065 or visit our website.

Dealing with market anxiety

The regulator of the capital and securities market further reiterates its objective to promote stronger market operations, stronger financial intermediation and financial inclusion.

“This is despite the level of anxiety among a section of investors due to the recent reforms in the financial system,” it said.

Improving liquidity in the market

SEC in the statement also maintained that it is engaging stakeholders on efforts to improve liquidity in the industry.

“The Commission has and continues to introduce regulatory measures to help ensure a stable, efficient, transparent and fair marketplace where investors’ funds are protected” it added.

 

Proposed measures by the Securities and Exchange Commission to firmly stabilize the industry

– Holding AMCs/FMs accountable for honouring their obligations to their clients

– The introduction and enforcement of corporate governance guidelines for operators in the industry

including AMCs/FMs,

– Higher minimum capital/liquidity requirements for AMCs/FMs and other operators,

– Stringent licensing requirements,

– Investment guidelines including restrictions on related party investments/guaranteed investments

– Streamlining of the Commission’s internal processes including through automation of processes to promote efficiency