Business Nigeria brings in custody rules to guard $9.7 billion funds industry

Nigeria brings in custody rules to guard $9.7 billion funds industry

Nigeria brings in custody rules to guard $9.7 billion funds industry

Please strive one other search

Economic system4 hours ago (Sep 19, 2021 11: 40AM ET)

By Felix Onuah and Chijioke Ohuocha

ABUJA (Reuters) -Nigeria has introduced custody guidelines for its 4 trillion naira ($9.7 billion) fund management alternate to guard investors and additional manufacture its capital markets, the Securities and Replace Price (SEC) acknowledged on Sunday.

Before the guidelines, funding managers warehoused securities and cash, which meant that investors may perchance lose in the event of a manager being declared bankrupt or insolvent.

“All consumer sources managed under discretionary and non-discretionary mandates are to be held under independent custodial agreements and custodial banks,” SEC director fashioned Lamido Yuguda educated Reuters

Yuguda acknowledged a prime quantity of home investors exited the capital market after a 2008 fracture wiped extra than 60% off inventory costs. He acknowledged the commission was once seeking to trap them help.

Nigeria has fewer than 500,000 individual accounts under different collective funding schemes, Yuguda acknowledged, adding that he was once having a peek to widen the sphere, ruin up between public and inner most fund managers.

“With the introduction of full custody … we’re at risk of peek a huge uptake of most of these products.”

Nigerian stocks are down 3.4% this year after rising 50% in 2020 as the sphere’s most attention-grabbing performing market. Nonetheless IPOs accept as true with yet to renew whereas a vulnerable economic outlook and forex risk coupled with the COVID-19 pandemic accept as true with afraid international investors.

Associated Articles

Disclaimer: Fusion Media would love to remind you that the details contained in this internet page is now not necessarily right-time nor appropriate. All CFDs (stocks, indexes, futures) and International replace costs have to now not equipped by exchanges nonetheless reasonably by market makers, and so costs may perchance moreover now not be appropriate and may perchance moreover fluctuate from the categorical market label, that formula costs are indicative and now not acceptable for Trading applications. Attributable to this truth Fusion Media doesn`t undergo any accountability for any Trading losses it’s probably you’ll perhaps incur as a results of the utilize of this data.

Fusion Media or anyone keen with Fusion Media will now not accept any liability for loss or injury as a results of reliance on the details including data, quotes, charts and desire/sell indicators contained within this internet page. Please be totally educated referring to the dangers and charges associated to Trading the financial markets, it’s one of many riskiest funding kinds that it’s probably you’ll perhaps moreover factor in.

Study Extra



Please enter your comment!
Please enter your name here