The Securities and Exchange Commission (SEC) Nigeria and the National Insurance Commission (NAICOM) will collaborate to strengthen enforcement actions against insurance companies that misused funds raised from the capital market.
This disclosure was made by the acting director-general of the SEC, Mr Mounir Gwarzo, who hosted the management of the NAICOM on a courtesy visit to his office in Abuja, yesterday.
The deputy commissioner of insurance (Technical), NAICOM, Mr Muhammad Kari, had highlighted some cases currently being investigated by the NAICOM where funds were raised from the capital market and applied for other use by some insurance companies.
According to him, such cases necessitate the involvement of the SEC as the 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. Currently, a collaboration between the two institutions happened 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 regulatory bodies were to set up an inter-agency committee for speedy resolution of the issues.
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 which will strengthen the synergy between our respective areas of oversight.”
Source : Leadership
