Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC) will impose appropriate sanctions on collective investment schemes (CIS) for any errors in their audited accounts.
The Commission stated that it shall henceforth discontinue the practice of issuing prior approval or no objection for audited accounts of collective investment schemes, otherwise known as mutual funds.
Consequently, annual accounts of collective investment schemes upon completion of audit and auditor certification, shall be published within three months after the end of the period to which the accounts relate or any other period prescribed by the Commission from time to time.
“Note however that any misstatements, misrepresentations, or otherwise, observed in the audited accounts of a collective investment scheme shall attract appropriate sanctions, including a requirement to restate the accounts in the scheme’s succeeding financial year, on the fund manager, trustee and auditor”,
SEC stated. SEC noted that the changes in the audit approval process was in line with the provisions of section 169(2)&(3) and section 181(1)(f),(g) and (h) of the Investment and Securities Act 2007, and the importance of disseminating timely information to the market.