Economy
SEC Publishes Rules for Exposure
By Dipo Olowookere
- New Rule
Asset Manager Code of Professional Conduct
1.1 General Principles of Conduct
Managers have the following responsibilities to their clients.
Managers must:
- Act in a professional and ethical manner at all times.
- Act for the benefit of clients.
- Act with independence and objectivity.
- Act with skill, competence, and diligence.
- Communicate with clients in a timely and accurate manner.
- Uphold the applicable rules governing capital markets.
1.2 Code of Professional Conduct
1.2.1 Obligation to clients
Managers must:
- Place client interests before their own.
- Preserve the confidentiality of information communicated by clients within the scope of the Manager–client relationship.
- Refuse to participate in any business relationship or accept any gift that could reasonably be expected to affect their independence, objectivity, or loyalty to clients.
1.2.2 Investment Process and Actions
Managers must:
- Use reasonable care and prudent judgment when managing client assets.
- Not engage in practices designed to distort prices or artificially inflate trading volume with the intent to mislead market participants.
- Deal fairly and objectively with all clients when providing investment information, making investment recommendations, or taking investment action.
- Have a reasonable and adequate basis for investment decisions.
- When managing a portfolio or pooled fund according to a specific mandate, strategy, or style:
- Take only investment actions that are consistent with the stated objectives and constraints of that portfolio or fund.
- Provide adequate disclosures and information so investors can consider whether any proposed changes in the investment style or strategy meet their investment needs.
- When managing separate accounts and before providing investment advice or taking investment action on behalf of the client:
- Evaluate and understand the client’s investment objectives, tolerance for risk, time horizon, liquidity needs, financial constraints, any unique circumstances (including tax considerations, legal or regulatory constraints, etc.) and any other relevant information that would affect investment policy.
- Determine that an investment is suitable to a client’s financial situation.
1.2.3 Trading
Managers must:
- Not act or cause others to act on material non-public information that could affect the value of a publicly traded investment.
- Give priority to investments made on behalf of the client over those that benefit the Managers’ own interests.
- Use commissions generated from client trades to pay for only investment-related products or services that directly assist the Manager in its investment decision making process, and not in the management of the firm.
- Maximize client portfolio value by seeking best execution for all client transactions.
- Establish policies to ensure fair and equitable trade allocation among client accounts.
1.2.4 Risk Management, Compliance and Support
Managers must:
- Develop and maintain policies and procedures to ensure that their activities comply with the provisions of this Code and all applicable legal and regulatory requirements.
- Appoint a compliance officer responsible for administering the policies and procedures and for investigating complaints regarding the conduct of the Manager or its personnel.
- Ensure that portfolio information provided to clients by the Manager is accurate and complete and arrange for independent third-party confirmation or review of such information.
- Maintain records for an appropriate period of time in an easily accessible format.
- Employ qualified staff and sufficient human and technological resources to thoroughly investigate, analyze, implement, and monitor investment decisions and actions.
- Establish a business-continuity plan to address disaster recovery or periodic disruptions of the financial markets.
- Establish a firm-wide risk management process that identifies, measures, and manages the risk position of the Manager and its investments, including the sources, nature, and degree of risk exposure.
1.2.5 Performance and Valuation
Managers must:
- Present performance information that is fair, accurate, relevant, timely, and complete. Managers must not misrepresent the performance of individual portfolios or of their firm.
- Use fair-market prices to value client holdings and apply, in good faith, methods to determine the fair value of any securities for which no independent, third-party market quotation is readily available.
1.2.6 Disclosures
Managers must:
- Communicate with clients on an ongoing and timely basis.
- Ensure that disclosures are truthful, accurate, complete, and understandable and are presented in a format that communicates the information effectively.
- Include any material facts when making disclosures or providing information to clients regarding themselves, their personnel, investments, or the investment process.
- Disclose the following:
- Conflicts of interests generated by any relationships with brokers or other entities, other client accounts, fee structures, or other matters.
- Regulatory or disciplinary action taken against the Manager or its personnel related to professional conduct.
- The investment process, including information regarding lock-up periods, strategies, risk factors, and use of derivatives and leverage.
- Management fees and other investment costs charged to investors, including what costs are included in the fees and the methodologies for determining fees and costs.
- The amount of any soft or bundled commissions, the goods and/or services received in return, and how those goods and/or services benefit the client.
- The performance of clients’ investments on a regular and timely basis.
- Valuation methods used to make investment decisions and value client holdings.
- Shareholder/unit holder voting policies.
- Trade allocation policies.
- Results of the review or audit of the fund or account.
- Significant personnel or organizational changes that have occurred at the Manager.
- Risk management processes.
2.0 Sundry Amendments
2.1 Amendment to Rule on Trading In Unlisted Securities – Inclusion of Debt Securities
- Existing Rule (a)
All Securities of unlisted public companies shall be bought, sold or transferred only by means of a system approved by the Commission and under such terms and conditions as the Commission may prescribe from time to time.
A slight amendment replacing the words “unlisted public” with “public unlisted” is being proposed. The new Rule will read as follows:
(a) All securities of public unlisted companies shall be bought, sold or transferred only by means of a system approved by the Commission and under such terms as the Commission may prescribe from time to time.
- New Rule (b) to provide as follows:
(b) All debt securities issued in Nigeria, i.e. issued by the Federal Government of Nigeria (“FGN”), Subnationals (State and Local Government), Supranational and Corporate entities, shall be bought, sold or transferred in the secondary market only through a SEC registered trading facility or Securities Exchange.
- A new Rule (c) to include regulation of trading in foreign currency securities of Nigerian entities listed in other jurisdictions is proposed as follows:
(c) All exchange of debt securities traded (including foreign currency securities of Nigerian entities listed in other jurisdictions e.g. Eurodollar bonds) in the Nigerian capital market shall be executed on or reported to a SEC-registered Securities Exchange or trading facility.
- Existing Rule (b) which provides that:
No person shall buy, sell or otherwise transfer securities of an unlisted public company except through the platform of a registered securities exchange established for the purpose of facilitating over-the-counter trading of securities.
To be slightly amended and renumbered as Rule (d) to compel trading of securities of public companies on SEC-registered platforms only, is proposed as follows:
(d) No person shall buy, sell or otherwise transfer securities of a public unlisted company or government agency except through the platform of a SEC-registered securities exchange or trading facility established for the purpose of facilitating over-the-counter trading of securities.
- Existing Rule (c) which provides that:
Any unlisted public company, director, company secretary, registrar, broker/dealer or such other persons who facilitates the buying, selling or transfers of the securities of an unlisted public company otherwise than through the platform of a registered securities exchange, shall be liable to a penalty of not less than N100, 000 in the first instance and not more than N5, 000 for every day the infraction continues.
The existing Rule (c) as outlined above to be slightly amended and renumbered as Rule (e) to read as follows:
- Any public unlisted company, director, company secretary, registrar, broker/dealer or such other persons who facilitate the buying, selling or transfer of the securities of a public unlisted company or government agency otherwise than through the platform of a SEC-registered securities exchange or trading facility shall be liable to a penalty of not less than N100,000 in the first instance and not more than N5,000 for every day of default.
2.2 Review of Capital Requirement for Sub-Brokers
- Existing Rule 67(1)(j) which provides that Corporate Sub-Broker (to show) evidence of minimum paid-up capital of N1million.
Amendment of Rule 67(1)(j) to provide that Corporate Sub-Broker (to show) evidence of minimum paid-up capital of N10million.
- Existing Schedule I, Part B(5) which reflects N5million as minimum paid up capital requirement for Corporate Sub-Brokers
Amendment of Schedule I, Part B(5) to reflect N10million as minimum paid up capital requirement for Corporate Sub-Brokers
- Existing Rule 67(2)(a)(ii) which provides that Individual Sub-Broker (to show) evidence of minimum net worth of N500,000.00
Amendment of Rule 67(2)(a)(ii) to provide that Individual Sub-Broker (to show) evidence of minimum net worth of N1million.
- Existing Schedule I, Part B(6) which reflects N500,000.00 as minimum net worth requirement for Individual Sub-Brokers.
Amendment of Schedule I Part B(6) to reflect N1million as minimum net worth requirement for Individual Sub-Brokers.
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By Adedapo Adesanya
Nigeria has the potential to produce 1.9 million barrels of crude oil per day, having hit a peak production of 1.86 million barrels per day in May, according to the chief executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mrs Oritsemeyiwa Eyesan.
The NUPRC chief said this on Wednesday during a meeting with the chairman of the Nigeria Revenue Service, Mr Zacch Adedeji, at the NRS headquarters in Abuja.
In a statement signed by the agency’s Head of Media and Corporate Communications, Mr Eniola Akinkuotu, it was disclosed that the country’s oil industry has continued to record production growth, noting that crude output reached a peak of 1.86 million barrels per day in May, placing the industry on a stronger recovery path.
The meeting also focused on strengthening collaboration between the two agencies to promote transparency, accountability and efficiency in the collection of oil and gas revenues.
Speaking during the engagement, Mrs Eyesan commended the leadership of the NRS for reforms that culminated in the enactment of the NRS Act and described the transition of revenue collection responsibilities as smooth.
Mrs Eyesan said the process had been seamless. The CCE also highlighted the Commission’s efforts in creating an enabling environment for operators in the oil and gas industry.
“We are here to enable them, enable their businesses, ensure that they survive and succeed. And we want to grow the pie because when you grow the pie, everybody benefits,” she said.
She also disclosed that recent gains in crude production demonstrate that industry reforms and collaborative efforts by stakeholders are beginning to yield positive results.
“We are back to production. We are ramping up now, and we want to continue working. We still recognise the constraints. Infrastructure and asset integrity are major constraints, but we will work on these. Even human capacity in the industry—we see that because we want to grow, we must also grow that capacity to meet the demands,” she said.
The NUPRC boss also pointed out that one of the key targets upon assuming office was the digitisation of NUPRC’s operations, a goal she said has largely been achieved.
By Adedapo Adesanya
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called for an immediate reduction in ex-depot and retail pump prices of petroleum products, as global oil prices dropped below $80 per barrel.
The association’s National President, Mr Billy Gillis-Harry, made the call in a statement signed by PETROAN’s National Public Relations Officer, Mr Joseph Obele.
According to Mr Gillis-Harry, the downward movement in international crude oil prices presents an opportunity for stakeholders in the downstream petroleum sector to pass on the benefits of lower crude costs to Nigerian consumers.
He stressed that prevailing market conditions should be reflected in both ex-depot and retail pump prices to ensure fairness and provide economic relief to Nigerians.
“The recent drop in global crude oil prices offers an opportunity for stakeholders in the downstream petroleum sector to pass the savings on lower crude costs to Nigerian consumers,” he said.
He added that “market realities should be reflected in both ex-depot and retail pump prices in the interest of fairness and economic relief for the public.”
The PETROAN president noted that Brent crude oil prices have fallen to about $77–$78 per barrel following the ceasefire agreement between the United States and Iran and expectations of a gradual normalisation of oil exports through the Strait of Hormuz.
He said market analysts currently project Brent crude to trade between $75 and $82 per barrel next week, while West Texas Intermediate (WTI) crude is expected to remain within the $72 to $79 per barrel range.
Mr Gillis-Harry attributed the decline in crude oil prices to the continued implementation of the U.S.-Iran peace agreement, increased crude exports from the Middle East and concerns over weaker global oil demand.
While acknowledging that fresh supply disruptions, a breakdown in peace negotiations or unexpected production cuts by the Organisation of Petroleum Exporting Countries (OPEC) and its allies could trigger price increases, he maintained that the current outlook for the oil market remains relatively stable to bearish.
The PETROAN president also expressed concern that the landing cost of imported petroleum products appears, in some cases, to be lower than the prices offered by domestic refiners.
“According to him, this development is surprising and underscores the need for a more competitive downstream petroleum market that guarantees consumers access to the most affordable products available,” the statement said.
To address the situation, Mr Gillis-Harry urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue issuing import licences to qualified marketers.
He explained that “increased competition among suppliers would help moderate prices, discourage monopolistic tendencies, and ensure a steady supply of petroleum products across the country.”
The PETROAN president maintained that competition remains critical to achieving efficiency and consumer protection in the sector.
“Competition remains one of the most effective mechanisms for driving efficiency, reducing costs, and protecting consumers,” he said.
He added that a competitive market environment would encourage all market participants to review their prices downward in line with prevailing market realities.
PETROAN further called on the Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Limited, Mr Bayo Ojulari, to facilitate discussions with two Chinese firms that have expressed interest in operating the Port Harcourt and Warri refineries.
Mr Gillis-Harry said the successful revival and operation of the facilities under private-sector management could further drive down petroleum product prices.
“If these refineries are successfully revived and operated as private-sector-driven facilities, petroleum product prices are expected to decline further due to improved efficiency and increased domestic refining capacity,” he said.
He noted that the resumption of operations at the Port Harcourt and Warri refineries under competent private management would enhance supply stability, promote healthy competition and ultimately make petroleum products more affordable for Nigerians.
The PETROAN president added that sustained moderation in crude oil prices, combined with stable exchange rates and refining costs, should support lower petrol prices and provide relief to consumers and businesses grappling with economic challenges.
By Aduragbemi Omiyale
The N3.04 billion rights issue of Regency Alliance Insurance Plc is expected to open on Monday, June 22, 2026, and close on Friday, July 3, 2026, with shareholders urged to participate.
The underwriting firm recently signed an agreement on the rights issue, with board members, management, issuing houses, legal advisers, stockbrokers, and other key stakeholders in attendance.
Regency Alliance is offering to shareholders 3,201,000,000 ordinary shares of 50 Kobo each at 95 Kobo per share on the basis of one new ordinary share for every five ordinary shares held.
The purpose of the fresh capital raise is to bolster the company’s solvency ratios, support business growth, and invest in digital infrastructure and new product development.
The insurance company noted that the rights issue provides an opportunity to existing shareholders to subscribe for additional shares in proportion to their current holdings, protecting them from dilution while enabling them to participate in the organisation’s future growth.
“This capital raise will give us the firepower to meet evolving risks, expand our reach, and deepen the promise we make to every policyholder; that Regency Alliance will be there when it matters most,” the acting chairman of Regency Alliance, Mr Wale Taiwo (SAN), stated.
“We are particularly encouraged by the unwavering support of our shareholders who have stood by the company through its growth journey. We urge all eligible shareholders to take advantage of this rights issue and fully exercise their rights.
“By doing so, they will not only protect their investment from dilution but also participate directly in the exciting growth opportunities that lie ahead for Regency Alliance Insurance,” he added.
Also commenting, the Managing Director of the firm, Mr Bode Oseni, said, “Regency Alliance has always prided itself on being agile, customer-focused xd, and financially sound. The proceeds from this rights issue will accelerate our digital transformation, enhance claims efficiency, and enable us to introduce innovative products tailored to SMEs, Gen Z, and other underserved segments across Nigerian and beyond. We are not merely raising capital; we are raising our ambition.”
“We remain optimistic that our shareholders will embrace this opportunity and demonstrate their confidence in the company’s future by taking up their rights. Together, we are building a strong and more competitive insurance institution,” he added.
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