Heritage Bank says it has no business relationship or association with Heritage Capital Market Limited, which was recently suspended by the Securities and Exchange Commission.
The SEC had suspended Heritage Capital Markets Limited and its directors as well as sponsored individuals over an alleged unauthorised sale of shares belonging to an investor and the company’s refusal to comply with the commission’s directives over the matter.
In a statement on Wednesday, the management of Heritage Bank stated, “Our attention has been drawn to a certain recent publication in some of the national dailies regarding the suspension of a certain “Heritage Capital Market Limited” by the Securities and Exchange Commission.
“Our concern stems from the resemblance in its name to our organisation, and the impression that this might leave on the minds of our dear customers.
“We wish to hereby state that “Heritage Bank Plc has no business relationship or association with the affected company- “Heritage Capital Market Limited”.
“Heritage Bank remains resolute and committed to our customer’s upholding in trust the privilege to partner with them in fulfilling your financial objectives.”
SEC has warned the general public that the suspension of Heritage Bank Capital Limited remains was indefinite.
It said, “The general public is hereby informed that the suspension is indefinite and shall remain in force pending the resolution of the matter against the operator.”
The capital market regulator also said its attention had been drawn to a circular issued by a regulatory institution directing some persons to register as dealing members with the FMDQ OTC Securities Exchange, an Exchange registered by the commission.
Section 38 of the Investment and Securities Act 2007, according to the commission, provides that no person shall operate in the Nigerian capital market as an expert or professional or in any other capacity as may be determined by the commission; or carry on investments and securities business unless the person is registered in accordance with the Act and the rules and regulations made there under.
Furthermore, it added that Section 315 of the Investment and Securities Act, 2007 defines a dealing member as “a body corporate which is a member of a recognized Securities Exchange and is licensed to engage in dealing in securities on that Exchange”.
SEC insisted, “By the above provisions of the law, only dealing members registered by the commission are permitted to engage in capital market activities in the Nigerian capital market.
“Consequently, SEC as the apex regulator of the Nigerian capital market wishes to state as follow: By virtue of Section 13 (g) of the ISA, the commission is responsible for the registration of all corporate and individual market operators;
“Only persons registered by the commission are permitted to operate in the Nigerian capital market and as such, on all platforms registered by it.
“The commission would not hesitate to take appropriate enforcement action against any person found to be in violation of the provisions of the ISA 2007 and the rules and regulations made pursuant thereto.
“While the commission remains supportive of initiatives geared towards advancing the Nigeria capital market, such initiatives must confine to the prevailing legislative regime.”