SEC reaffirms suspension order on BGL

Following the Wednesday’s discharge of the ex-parte order obtained against SEC by BGL Plc and its subsidiaries, the Securities and Exchange Commission (SEC), Nigeria’s apex capital market regulator, yesterday (Saturday Sept 19) reaffirmed the earlier suspension of BGL Group and its sponsored individuals.

The Federal High Court had on September 17 in Suit No. FHC/L/CS/767/15; BGL Plc & Ors Vs Securities and Exchange Commission, discharged the Ex-Parte order obtained by BGL Plc and its subsidiaries on May 27, 2015.

The ex-parte order directed that the status quo should be maintained, halting further action by SEC, including administrative trial of BGL’s officials. SEC had summoned BGL and its principal officials to its Administrative Proceedings Committee (APC), which was scheduled to hold between August 4 and 5, 2015.

The APC hearing in SEC APC/01//2015 RIVERS STATE MINISTRY OF FINANCE & 31 OTHERS VS BGL PLC & 31 OTHERS was postponed because of the Federal High Court order.

In a statement signed by the management of SEC yesterday, the Commission noted that “in view of the Court’s ruling, BGL, its subsidiaries and sponsored individuals remain suspended from operating in the Nigerian capital market.

“The Nigerian Stock Exchange (NSE), Central Securities Clearing System CSCS, Financial Market Dealers Quotation (FMDQ) Plc, Nigeria Association of Securities Dealers (NASD) Plc and the general public should further note that the directives of the Commission in its public notice dated the 21st of May 2015 still subsists,” SEC stated.

The Commission had in May come down heavily on BGL, one of Nigeria’s leading investment banking groups, with the suspension of the BGL Group and its subsidiaries from all capital market activities.

SEC said its decisions were based on the “report of a detailed investigation into the various complaints received from investors against subsidiaries of BGL Group”.

SEC had late April intervened in the operations of BGL Group Plc, suspended its board and set up an interim management board for the group. The interim management board, headed by a former president of Chartered Institute of Stockbrokers (CIS), Mr Oladipo Aina, was mandated to conduct full investigation into the operations of BGL Group.

Other members of the interim board were Mr. Abubakar Ambursa, Mrs. Hafsat Rufai, Ms. Temitayo Siyanbola and Ms. Tonne Ladipo-Ajayi.

On the basis of the investigation report, SEC announced the suspension of BGL Asset Management Limited, BGL Capital Limited and BGL Securities Limited from all capital market activities.

The Commission also directed that all major officials and sponsored individuals of BGL Asset Management Limited, BGL Capital Limited and BGL Securities Limited whose particulars are contained in the Commission’s record as at December 2014 be suspended from performing any capital market activity.

Read also: Court gives SEC go ahead to expel BGL, ban Okumagba

SEC particularly cited Mr. Albert Okumagba, the group managing director of BGL Group and directed that Okumagba, who was the president of CIS before the April sack of the board, should cease to be a registered sponsored individual with the Commission following the withdrawal of the registration of BGL Plc as a capital market operator.

With this directive, Okumagba, one of the most influential capital market operators, will therefore no longer be entitled to carry out capital market activities.

Besides, the apex capital market regulator stated that it has referred what it described as “suspicious transactions” observed in the course of the investigation to the appropriate law enforcement agencies for further investigation.

According to the statement, BGL Asset Management Limited, BGL Capital Limited and BGL Securities Limited and all individuals involved in the management of the companies have also been referred to the Administrative Proceedings Committee (APC) of SEC for further trial.

Securities and Exchange Commission (SEC) had postponed its hearing on the complaints leveled against BGL Plc by more than 30 investors following a Federal High Court order which directed the apex capital market regulator not to take any further action on the case.

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