SEC Introduces New Rules For Audited Accounts Of Collective Investment Schemes

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The Securities and Exchange Commission has stopped the issuance of prior approval for audited accounts of Collective Investment Schemes.

The development was announced in a statement seen by THE WHISTLER.

Following the development, the Nigerian capital market regulator said Collective investment Scheme would be required to publish their accounts within three months after the end of the previous period.

The Commission noted that the new rule will fast track the dissemination of information by CIS operators in the country.

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The Commission said, “Pursuant to the provisions of Section 169(2)&(3) and Section 181(1)(f),(g)&(h) of the Investment and Securities Act 2007, and the importance of disseminating timely information to the market, the Commission shall henceforth discontinue the practice of issuing prior approval or no objection for Audited Accounts of Collective Investment Schemes.

“Consequently, annual accounts of Collective Investment Schemes upon completion of audit and auditor certification, shall be published within three months after the end of the period to which the accounts relate or any other period prescribed by the Commission from time to time.

“Note however that any misstatements, misrepresentations, or otherwise, observed in the audited accounts of a Collective Investment Scheme shall attract appropriate sanctions including a requirement to restate the accounts in the Scheme’s succeeding financial year on the Fund Manager, Trustee and Auditor.”

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