INVESTMENT AND SECURITY BILL: CBN WARNS THAT MUCH POWER TO SEC WILL CREATE TENSION
The Central Bank of Nigeria has warned that powers allocated to the Security and Exchange Commission (SEC) in the renewed investment and securities bill 2024 is capable of creating tension with the laws on money laundering.
Speaking on Thursday during a public hearing on the bill for an act to repeal the investment and securities Act 2007 and enact a reviewed Investment and Securities Bill, 2024, organised by the Senate Committee on Capital Market in Abuja, the CBN representative, Dr Tukur Galadima advised against absolute powers being proposed for SEC over public companies.
He argued that arrogating such powers to the SEC would cause friction as some of the public companies involve some financial institutions already under the control of the CBN.
He also advised against a proposal in the bill that seeks to allow for the use of cash to buy securities, saying, “You cannot use cash to buy securities. It is contrary to the provisions of the law against money laundering.”
He further urged the committee to expunge section 193, which seeks to allow for investment in multi-currency, saying “The issue of currency is strictly with the CBN.”
He, noted that the CBN is in support of new laws for regulation of the investment and securities and the capital market in general.
In his presentation, the Director-General of SEC, Dr Emomotimi Agama, said the move by the Senate committee to repeal the Investment and Securities Act 2007 and enact a new one, is very necessary.
“For Nigeria to get it right among the comity of nations as far as the capital market is concerned, the proposed law needs to be passed before the year runs out. The proposed bill when passed into law would turn around the Nigerian economy in the area of commodity market, cryptocurrency etc,” he said.
Some of the stakeholders were PENCOM, Nigeria Deposit Insurance Corporation ( NDIC), Chartered Institute of Stockbrokers, Capital Market Solicitor Association, and Institute of Capital Market Registrars
The chairman of the senate committee on capital market, Senator Osita Izunaso, said the SEC bill is very sensitive, being the ombudsman law covering the entire capital market.
He assured all the stakeholders that the final draft of the bill would be ready by next week and urged the office of the Accountant-General of the Federation to join the committee at this stage to avoid refusal of presidential assent when eventually passed for a third reading by both chambers of the National Assembly.
