SEC Revokes Mainland Trust’s License The Securities and Exchange Commission (SEC) has revoked the operating license of Mainland Trust Limited and suspended Centurion Registrars Limited, citing their failure to comply with regulatory directives and resolve multiple investor complaints.
The regulatory action, announced in two separate circulars over the weekend, aims to protect investors and uphold the integrity of Nigeria’s capital market.
Mainland Trust’s License Revoked
In its circular, the SEC stated that the registration of Mainland Trust Limited as a capital market operator had been cancelled with immediate effect due to persistent non-compliance with regulatory requirements.
“This cancellation order is made pursuant to the commission’s powers under Section 38(4) of the Investments and Securities Act, 2007, and Rule 34(1)(e) of the SEC Consolidated Rules and Regulations, 2013,” the statement read.
According to the commission, Mainland Trust had repeatedly failed to adhere to directives issued by the regulatory body and had unresolved complaints from investors and stakeholders.
As a result, the SEC instructed all capital market participants to cease any dealings with Mainland Trust Limited. Investors and clients were also urged to seek alternative arrangements for their transactions.
Centurion Registrars Suspended Indefinitely
In a separate directive, the SEC announced the suspension of Centurion Registrars Limited, along with its directors and sponsored individuals, barring them from participating in capital market activities until further notice.
The commission further advised all clients of Centurion Registrars Limited to contact Africa Prudential Plc for assistance in transferring their portfolios to another registrar of their choice.
To enforce the suspension, the SEC directed major financial and market regulatory bodies, including:
The Nigerian Exchange Group (NGX)
The Institute of Capital Market Registrars (ICMR)
The Chartered Institute of Stockbrokers (CIS)
The Central Securities Clearing System (CSCS) Plc
All capital market trade associations
These organizations were instructed to discontinue any capital market-related dealings with Centurion Registrars Limited and its principal officers.
Protecting Investors and Market Integrity
The SEC’s decision to revoke Mainland Trust Limited’s license and suspend Centurion Registrars Limited underscores its commitment to maintaining transparency, accountability, and investor protection within the Nigerian capital market.
Regulatory authorities have recently intensified their oversight, cracking down on firms that fail to adhere to market rules or engage in unethical business practices.
Industry analysts believe this move serves as a strong warning to other market operators, reinforcing the SEC’s zero-tolerance policy for non-compliance and misconduct.
Meanwhile, affected investors are encouraged to follow the SEC’s guidance on transferring their portfolios and engaging with compliant capital market firms to avoid disruptions in their investment activities.
As the situation unfolds, stakeholders will be watching to see how Mainland Trust Limited and Centurion Registrars respond to these sanctions and whether further regulatory actions will be taken.
