The Securities and Exchange Commission (SEC) has said it has commenced an investigation into fund managers’ exposure in Heritage Bank Limited after the Central Bank of Nigeria (CBN) revoked the operating licence of the financial institution.
The Head Monitoring Department, SEC, Tarfa Makyur, in a signed circular to the President of the Fund Managers Association of Nigeria (FMAN), dated June 14, 2024, stated that the commission is currently assessing the potential implications of the CBN’s decision to invoke the operating licence of Heritage Bank on the capital market.
Makyur, on behalf of Director-General, SEC, Emomotimi Agama, in the circular, requested that members of the FMAN provide detailed information on their level of exposure to Heritage Bank in the request of proprietary funds and client funds.
He, however, urged them that the needed information must be submitted to the commission no later than June 30, 2024. “The commission appreciates your prompt cooperation and assistance in this matter,” the circular added.
The CBN, early this month disclosed that the board and management of the bank had not been able to improve the bank’s financial performance, a situation which constitutes a threat to financial stability.
“This follows a period during which the CBN engaged with the bank and prescribed various supervisory steps intended to stem the decline. Regrettably, the bank has continued to suffer and has no reasonable prospects of recovery, thereby making the revocation of the license the next necessary step,” the acting Director of Corporate Communications, CBN, Hakama Sidi Ali, had explained in a statement.
