The Securities & Exchange Commission (SEC) recently directed all registered Capital Market Operators (CMOs) to update their statutory annual Fidelity Bond Filings and/or Professional Indemnity Insurance Policy Filings (Fidelity Filings).
By virtue of Rule 27 (1) of SEC Rules and Regulations, (made pursuant to the Investments and Securities Act, 2007) every Registered CMO is required to provide and maintain Fidelity Filings. The primary regulatory objective of Fidelity Filings is to “insure” CMOs against theft/stealing, fraud or dishonesty, committed by each officer, employee and sponsored individual of the relevant CMO.
A review of the current Fidelity Filings shows a fair amount of CMOs may be behind on their Fidelity Filings. By this notice, it appears that the SEC is signalling to the market, that it would now take regulatory action against CMOs who fail to submit /update their Fidelity Filings. Accordingly, we encourage CMOs to take the hint and do the needful.
Updated fidelity bonds are to be forwarded to the following email addresses;
Please feel free to reach out to your Balogun Harold contact or via email@example.com for more information and/or clarification where required.