Market News
SEC targets unclaimed dividends with new initiative - PUNCH
In a move to address the issue of unclaimed dividends, the Securities and Exchange Commission has launched a new identity management initiative.
In a statement made available to our correspondent, the development was highlighted at a recent workshop on Identity Management for the capital market held in Lagos, recently.
Emphasising the significance of the initiative, the SEC Director General, Emomotimi Agama, stated, “The identity management system currently being developed will provide a lasting solution to the issue of unclaimed dividends, reduce barriers of entry to the market, and make it more attractive to the youth segment, whose participation is currently very low.”
The workshop brought together stakeholders and industry players to deliberate on ways to resolve the lingering identity management issues in the capital market.
“In view of the promise to stem this undesirable trend going forward, the commission is very passionate about this initiative because its success would portend great potential for our market,” Agama added.
The journey to address identity management issues began in 2018 following discussions at the third Capital Market Committee meeting of that year.
“The Securities and Exchange Commission set up an in-house committee in January 2019 to identify and address legacy identity management issues in the market,” Agama noted.
The in-house committee’s report stressed the need to consolidate investors’ data and find a lasting solution to the identity management challenges.
Following the committee’s recommendations, the SEC in 2021 dissolved the in-house committee and established a market-wide committee to undertake a more intensive study of the Nigerian identity crisis, particularly in the capital market.
