Regulatory Alerts2023-02-02 | OFI/DOA/CON/OFI/001/304Letter to all OFIs : Prohibition of Placement/Investment in Funds Managed by Uninsured Entities
The Central Bank of Nigeria has issued a letter to all Other Financial Institutions (OFIs) prohibiting them from investing in funds or products managed by uninsured entities. The bank has observed that many OFIs have substantial assets invested in these funds, often disguised as placements or investments in banks, which pose a high risk to depositors' funds. All OFIs are required to divest from these investments immediately and are given 90 days to liquidate any existing placements with such entities.
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