Regulatory Alerts2018-12-31
Directive to Fund Managers on Guaranteed Returns
The Securities and Exchange Commission mandates that all fund managers comply with its guaranteed returns directive after the compliance moratorium expires on December 31, 2018. Full enforcement begins January 1, 2019, subjecting non-compliant operators to penalties under Sections 122, 123, and 209(4) of the Securities Industry Act, 2016. This directive ensures rigorous oversight of capital market operations to protect investor interests and maintain a transparent, efficient securities market.
SECURITIESANDEXCHANGECOMMISSION The Securities and Exchange Commission hereby issues this Directive pursuant to Sections 3 and 209 of the Securities Industry Act, 2016 (Act 929) to all capital market operators operating as Fund Managers. Reference is made to the following Directives and Circulars:
- Part X, paragraph 13 of the Compliance Manual for Broker-Dealers, Investment Advisers and Representatives 2008
- Paragraph 2.1.2 of Circular No. SEC/CIR/001/2014
- Circular No. SEC/CIR/002/03/15
- Directive SEC/FM/DIRECTIVE/06-18 dated 18th June, 2018
- Directive SEC/FM/DIRECTIVE/06-18 dated 29th June, 2018 Please take notice that the Moratorium for Directive with No. SEC/FM/DIRECTIVE/06/18 expires today the 31st day of December, 2018. Affected market operators are hereby reminded of compliance with the Directive as the enforcement of the said Directive commences on the 1st day of January,
Failure to observe the above directive shall leave the Commission with no other option but to initiate the enforcement of the provisions contained in Sections 122, 123 and 209(4) of Act 929. The Commission hereby assures all investors, market operators and the general public that it is committed to ensuring rigorous enforcement of all the rules for operators in the capital market in order to promote the growth and development of an efficient, fair and transparent securities market in which investors and the integrity of the market are protected. ISSUED BY ORDER OF THE SECURITIES & EXCHANGE COMMISSION (SEC) DATED: DECEMBER 31, 2018 DIRECTIVE TO FUND MANAGERS ON GUARANTEED RETURNS NOTICE NO. SEC/DIR/002/12/2018