The Securities and Exchange Commission (SEC) has instructed Fund and Assets managers to institute measures to meet obligations due their clients.
The Commission in a statement recently has directed that this should be consistent with the terms and conditions of the investment contracts signed with them.
The directive comes at a time that there are reports that some investors are struggling to redeem their investments.
According to a recent report by Bloomberg, about US$1.6 billion investments have been locked up, which is partly linked to the recent banking clean up and its aftershocks.
But the Securities and Exchange Commission maintains that there is no need for panic withdrawals as it is committed to ensuring a sound, efficient and robust market where investors’ funds are protected.
It added that “there are well run sound Assets and Fund managing firms that are still in business”.
The Commission is also advising investors to also test the soundness of these investments by asking the fund managers these questions; regarding their governance practices, track record, staff turnover any unresolved complaints and regulatory breaches.
SEC is also asking investment pubic to director all unanswered questions to the toll-free line 0800100065 or visit our website.
The regulator of the capital and securities market further reiterates its objective to promote stronger market operations, stronger financial intermediation and financial inclusion.
“This is despite the level of anxiety among a section of investors due to the recent reforms in the financial system,” it said.
SEC in the statement also maintained that it is engaging stakeholders on efforts to improve liquidity in the industry.
“The Commission has and continues to introduce regulatory measures to help ensure a stable, efficient, transparent and fair marketplace where investors’ funds are protected” it added.
