SEC disburses N17.09m as compensation to 297 investors of closed Mega Asset Managers

The Securities and Exchange Commission (SEC) on Wednesday said the sum of N17.09 million has been disbursed to 297 investors as compensation from its National Investor Protection Fund (NIPF).

A breakdown of the compensation data obtained from the commission showed that the 297 investors were customers of the closed Mega Asset Managers Ltd, Nigeria’s news agency, NAN reported, quoting a source close to the commission.

The source said the NIPF board at its first meeting on Dec. 14, 2015, approved N25 million from the fund, adding that out of the figure, the sum of N17.09 million was used as compensation.

The source said 580 complainants suffered losses due to misappropriation by Mega Asset Managers Ltd, noting that after thorough verification, 297 investors were compensated and the commission’s board had on Dec. 2, 2014 at its 78th meeting approved the utilisation of the NIPF for Mega Assets loss.

He said 297 investors paid were those that had successfully completed and submitted relevant documents.

The source added that the commission would pay other investors after completion of the verification process.

He said the commission would remain committed to initiatives that would boost investor confidence, noting that lack of SEC board contributed to slow pace in investor compensation.

NIPF is a scheme being promoted by SEC to compensate investors that suffer losses due to the insolvency, bankruptcy or negligence of a capital market operator (CMO).

According to rules approved by the board of SEC, the NIPF will apply only to bankrupt capital market operators that are not dealing members of any Securities Exchange or Capital Trade Points.

The NIPF was also instituted for the purpose of compensating investors whose losses are not covered under the NIPF administered by SEC and Capital Trade Points.