By Felix Onuah and Chijioke Ohuocha
ABUJA (Reuters) -Nigeria has introduced custody rules for its 4 trillion naira ($9.7 billion) fund management industry to protect investors and further develop its capital markets, the Securities and Exchange Commission (SEC) said on Sunday.
Before the rules, investment managers warehoused securities and cash, which meant that investors could lose in the event of a manager being declared bankrupt or insolvent.
“All client assets managed under discretionary and non-discretionary mandates are to be held under independent custodial agreements and custodial banks,” SEC director general Lamido Yuguda told Reuters
Yuguda said a significant amount of domestic investors exited the capital market after a 2008…
Read the full article at: https://www.investing.com/news/economy/nigeria-brings-in-custody-rule-for-97-billion-funds-industry-2620131
