The Securities and Exchange Commission (SEC) has revoked the registration of Mainland Trust Limited as a capital market operator due to regulatory breaches and unresolved client complaints. The decision, effective immediately, was made under Section 38 (4) of the Investments and Securities Act, 2007, and Rule 34 (1) (e) of the SEC Consolidated Rules and Regulations 2013.
In an official statement released on Friday, the SEC stated that Mainland Trust Limited had consistently failed to comply with regulatory directives, prompting the cancellation of its registration. The Commission advised all clients of the firm to contact the Central Securities Clearing Systems (CSCS) for guidance on transferring their stocks to alternative stockbrokers.
Additionally, the SEC has instructed major capital market institutions—including the Nigerian Exchange Group (NGX), the Institute of Capital Market Registrars (ICMR), the Chartered Institute of Stockbrokers (CIS), and all Capital Market Trade Associations—to cease dealings with Mainland Trust Limited.
Under Part VI, Section 38 (4) of the Investments and Securities Act, the SEC is empowered to suspend or cancel a company’s registration if it fails to comply with regulatory requirements after being given a reasonable opportunity to be heard.
Rule 34 (1) (e) of the SEC Consolidated Rules and Regulations further specifies that a company’s registration may be revoked if it contravenes SEC rules or fails to resolve client complaints satisfactorily.
The SEC’s decision underscores its commitment to safeguarding investors and ensuring market integrity through strict enforcement of regulations.
