16 February 2015

SEC, NAICOM pledge better collaboration to discipline erring coys

The Securities and Exchange Commission (SEC) and the National Insurance Commission (NAICOM) will collaborate for better enforcement against insurance companies that misappropriate funds raised from the capital market. This disclosure was made by the Acting Director General of SEC, Mr. Mounir Gwarzo, who hosted the Management of NAICOM on a courtesy visit at his office in Abuja.
NAICOMThe Deputy Commissioner, Technical, NAICOM, Mr. Muhammad Kari, had highlighted a few cases currently being investigated by NAICOM where funds were raised from the capital market and applied for personal gain.

According to him, the cases necessitated the involvement of SEC as apex regulator of the Nigerian capital market with the responsibility of protecting investors. Responding, Gwarzo suggested closer cooperation between the two regulatory bodies to ensure erring persons or institutions are swiftly brought to book. “We are ready to work closely with NAICOM to resolve these cases” Gwarzo said.

Presently, collaboration between the two institutions happens within the framework of the Financial Services Regulation Coordinating Committee (FSRCC). However, Gwarzo believes the collaboration could be even stronger and more result oriented if the two bodies were to set up an inter-agency committee.

He said “The FSRCC was established to facilitate collaboration across the entire financial system. But beyond that platform, we need to create an inter-agency committee involving specific contact persons between our two institutions who will strengthen the synergy between our respective areas of oversight”.

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