SEC issues strict deadline over defunct Heritage Bank

5 months ago 14

Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the Stock Market.

The Securities and Exchange Commission (SEC) has directed all fund managers in Nigeria to disclose detailed information about their investments in the recently closed Heritage Bank.

It is important to highlight that on Monday, June 3, 2024, the Central Bank of Nigeria (CBN) revoked Heritage Bank's license because of regulatory breaches.

However, the CBN's appointed liquidator, the Nigeria Deposit Insurance Corporation (NDIC), has assured customers that an insured deposit of N5 million will be paid soon.

Fund managers to disclose investments in Heritage Bank

In a circular signed by Tarfa Makyur, Head of the SEC's Monitoring Department, and addressed to the President of the Fund Managers Association of Nigeria on June 14, 2024, the SEC requested that fund managers submit comprehensive data on their investments in Heritage Bank by June 30, 2024, via email.

The SEC emphasized its concern over the potential effects on the capital market and aimed to assess the extent of both proprietary and client funds involved with the bank.

The commission stated that it is evaluating the potential impact of the CBN's decision to revoke Heritage Bank Plc's operating license on the capital market.

The document partly reads:

“In this regard, we kindly request that your members provide detailed information on their level of exposure to Heritage Bank Plc in respect of proprietary funds and client funds."

It further instructed the fund managers to submit this information by June 30, 2024, via email. It expressed its appreciation for their prompt cooperation and assistance in this matter.

CBN denies plan to shut more banks

In related news, Legit.ng reported that the CBN had clarified that it has no intention of revoking the licenses of Unity Bank, Polaris Bank, or Keystone Bank.

It should be recalled that soon after Heritage Bank's license was revoked, a particular news medium reported that the aforementioned banks were going to experience a similar fate.

However, the apex bank dismissed the report in a statement posted on its social media platforms, insisting that the news was false.

Source: Legit.ng

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