E-Financial
SEC Mulls Rule Protect Investors, Stockbrokers from Risks, Losses
Securities and Exchange Commission (SEC) is proposing a new rule to look into the associated with stockbroking operations and protect investors in the event of the occurrence of the risk or loss insured.
In a disclosure, SEC said guideline, which will come under Rule 27A is mainly “to exempt capital market experts/professionals from maintaining fidelity bonds and enable the establishment of an insurance product for dealing members of securities exchanges to cover the risks associated with stockbroking operations and protect investors in the event of the occurrence of the risk or loss insured.”
The apex capital market regulator tagged the proposed rule as Insurance Policy for Corporate Bodies Licensed as a Dealing Member of a Securities Exchange.
In the existing Rule 27, which talks about Fidelity Bond, states that, “Every registered corporate body shall provide and maintain a bond which shall be issued by an insurance company acceptable to the Commission against theft/stealing, fraud or dishonesty, covering each officer, employee and sponsored individual of the company.”
But SEC wants this amended to “Every registered corporate body other than a corporate body licensed as a dealing member of a securities exchange and capital market experts/professionals shall provide and maintain a bond which shall be issued by an insurance company acceptable to the Commission against theft/stealing, fraud or dishonesty, covering each officer, employee and sponsored individual of the company.”
In the new rule, the agency is proposing that, “Every registered corporate body licensed as a dealing member of a securities exchange shall procure and maintain an insurance policy issued by an insurance company acceptable to the commission. The policy shall cover all aspects of the insured business activities and risks including but not limited to the following:
“(a) fidelity guarantee against theft/stealing, fraud or dishonesty, covering each officer, employee and sponsored individual of the company;
“(b) professional indemnity in respect of loss arising from any claim or claims for any act or omission or breach of duty by officer, employee and sponsored individual of the company;
“(c) directors liability in respect of claims against wrongful acts committed in the capacity of a director;
“(d) legal liability, or other third-party claim;
“(e) other risks associated with its products and services.
“Provided however that the insurance policy shall take into consideration the situation whereby the dealing member is a member of multiple securities exchanges.”
It is also considering a rule that will make “every corporate body licensed as a dealing member of a securities exchange shall procure and maintain an insurance policy which shall where applicable, as may be determined by a securities exchange, name the securities exchange’s investors’ protection fund as the co-insured.
“Payments from the policy shall be utilized by the securities exchange’s investors’ protection fund towards compensating investors who have suffered losses on their securities traded on a securities exchange from the occurrence of the risks covered by the insurance policy.
“Provided however that where the dealing member is a member of multiple exchanges, payment shall be made to the relevant securities exchange where the defalcation occurred.”
In addition, it is proposing that, “The insurance policy maintained by a dealing member of a securities exchange shall provide that payment under the insurance policy can be made directly to the:
“(a) securities exchange’s investors’ protection fund which shall compensate investors who have suffered losses or;
“(b) affected dealing member with the prior written consent of the securities exchange’s investors’ protection fund.”
“The insurance policy shall provide that it shall not be cancelled, terminated or modified by the dealing member of a securities exchange without the prior written consent of the securities exchange’s investors’ protection fund and the commission. Where the cancellation, termination or modification is at the instance of the insurance company such cancellation, termination or modification shall not be carried out except after written notice shall have been given by the insurance company to the commission and the securities exchange’s investors’ protection fund, not less than sixty (60) calendar days prior to the effective date of cancellation, termination or modification.
“The insurance policy shall be provided in such reasonable form, terms and under such premium as the fiduciary duties of the officer, employee or sponsored individual require, but with due consideration to all
relevant factors, including but not limited to the risks insured, products and services, clientele, the value of the aggregate assets of the dealing member of a securities exchange in relation to all its registered functions, to which any officer, employee or sponsored individual may have access, the type and terms of the arrangements made for the custody and safekeeping of assets and securities in the company’s portfolio,” it added.
“The insurance policy shall cover not less than 20% of the minimum paid up capital of the dealing member of a securities exchange.
“Every dealing member of a securities exchange shall file with the commission and the securities exchange:
“(a) a statement of the nature and value of a claim within five (5) business days after the making of any claim under the insurance policy; and
“(b) a copy of the terms of the settlement of any claim made under the insurance policy within five (5) business days of the receipt thereof.
“Every securities exchange on the advice of the securities exchange’s Investor Protection Fund (IPF) shall provide quarterly reports to the commission on all claims settled under the insurance policy, and the report shall include the name of the investor and the sum received under the insurance policy.”
The Securities & Exchange Commission (SEC) has challenged registrars and other Capital Market Operators (CMOs) to drive innovations and explore new opportunities in unlocking current changes in the global market.
This was stated by Dr. Emomotimi Agama, Director-General, SEC, at the Institute of Capital Market Registrars (ICMR) 14th Annual Conference & Presidential Investiture during the weekend in Lagos.
The theme of the 2025 conference was, “Unlocking Global Value: The evolving market role of capital market registrars in trust, efficiency and innovation.”
Agama who was represented by executive commissioner (Operations), SEC, Mr. Bola Ajomale, charged registrars to remain innovative and proactive, warning that unregulated players could take over their functions if the profession fails to evolve.
In a goodwill message, the Group chairman of NGX Group, Alhaji (Dr.) Umaru Kwairanga, described registrars as ‘the quiet custodians of confidence and credibility’ whose accuracy and efficiency underpin investor trust and corporate governance.
Group Vice President of Dangote Industries Limited, Mr. Olakunle Alake, who delivered a keynote address, outlined three imperatives for the registrar profession.
“Digitization and cybersecurity: embrace digital platforms, but with robust safeguards to protect data integrity. Capacity building and training: continuous education must be non-negotiable. The world is changing too fast for outdated skills. Global benchmarking: aim not just to meet local standards, but to benchmark against global best practices,” he said.
Founder and vice chairman of Emerging Africa Group, Dr. Toyin Sanni, urged registrars to reposition themselves as trusted, tech-enabled partners in the investment value chain.
IFC has announced investments totaling $310 million in projects that will support the growth of smaller businesses and job creation across several African countries. The projects were announced at the Africa Financial Summit (AFIS), which convened private and public sector representatives from across Africa under the theme of mobilizing domestic capital at scale for development.
The two-day event, co-hosted by IFC, the Jeune Afrique Media Group, and the Kingdom of Morocco, featured discussions among African central bank governors, regulators, financial institutions, and fintech innovators on how Africa can best tap its own resources—and attract more foreign investment—to shape the continent’s financial future, create jobs, and sustainably grow its economies.
On the sidelines of AFIS, IFC announced partnerships with several financial institutions that will channel funds and support towards businesses in Egypt, Ethiopia, and Morocco, helping businesses grow and reach new markets.
The new projects IFC announced are:
- A $50 million financing package to Suez Canal Bank will expand lending to smaller businesses across Egypt, particularly in underserved regions. A quarter of the loan is earmarked for women-owned businesses to help bridge the gender financing gap and boost inclusive growth.
- A $10 million equivalent IFC local-currency risk-sharing facility with Attijariwafa Bank Egypt to expand access to finance for smaller businesses and support job creation. At least a quarter of the loans are earmarked for women-owned businesses, and half to SMEs in vulnerable communities. The initiative is supported by the Prospects Partnership, which supports development for host communities and forcibly displaced people.
- A $250 million IFC risk-sharing facility with newly established Saham Bank will strengthen Morocco’s financial stability and expand access to finance for local businesses. IFC will share up to 50 percent of the credit risk on the bank’s $500 million corporate loan portfolio, helping sustain lending to key sectors. Saham Bank recently acquired Société Générale Marocaine de Banques.
- An IFC advisory services support program for VisionFund to help the microfinancier expand lending to smaller businesses and deepen financial inclusion in Ethiopia. The project will strengthen VisionFund’s capacity in strategic business planning, risk management, and responsible finance, enabling it to reach more underserved entrepreneurs—especially women. This initiative follows IFC’s recent $10 million local currency loan to VisionFund.
Ethiopis Tafara, IFC’s Vice President for Africa, said, “The combination of Africa’s own financial resources with strategic international capital is a potent recipe for growth on the continent. Africa’s entrepreneurs are building companies that rival any in the world—and with the right support, they can grow and create the jobs and opportunities Africa needs. These projects underscore the power of partnerships as well as the important role of events like AFIS in bringing together like-minded organizations for development and impact.”
AFIS was established in 2021 to promote a shared understanding among public authorities and private sector leaders of the trends and risks shaping the continent’s financial industry. Through open dialogue and collaboration, AFIS helps identify opportunities for improvement, whether through regulatory reforms or market-driven initiatives.
This year’s event brought together more than 1,250 senior leaders from Africa’s financial sector—including those who manage Africa’s savings with those who can channel international investment—with the aim of delivering more funds to job-creating African businesses and projects.
Over the past two decades, IFC has collaborated with more than 300 financial institutions across 40 African countries to enhance banking systems, expand access to finance, and mobilize private capital. This partnership has helped build the foundations for opportunity—fueling enterprise, enabling jobs, and driving the continent’s next generation of growth.
Justice Rahman Oshodi of the Lagos State Special Offences Court in Ikeja on Wednesday, convicted and sentenced Samuel Asiegbu, former financial and retail product manager with Wema Bank Nigeria Plc, to three years in prison for hacking and stealing N8.56 billion from the bank vault.
Justice Oshodi jailed Asiegbu, without the option of a fine, after pleading guilty to the eight-count charge of conspiracy, fraud and unauthorised access to a computer system.
The convict was accused by the Economic and Financial Crimes Commission (EFCC) alongside Hamza Zakaria, Nurudeen Ibrahim and Alhaji Sulaiman of manipulating the bank’s internal systems in January 2025 to cause a financial loss of over N8.5 billion.
The anti-graft agency informed the court on June 23, 2025, when the defendants were first arraigned, that the offences violate Sections 409 and 386 of the Criminal Law of Lagos State, 2011.
All the defendants had initially pleaded not guilty to the charge.
However, Asiegbu later changed his plea to guilty, leading to his conviction and sentencing.
Justice Oshodi sentenced the convict to 10 months and 8 days in prison for count three and 1 year and 8 months for count four, both sentences are to run concurrently and without an option of a fine.
The court subsequently struck out counts one and two.
The judge has fixed November 14 for the commencement of the trial of the remaining defendants.
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