SEC moves to tackle identity fraud in capital market

The Securities and Exchange Commission says that the Identity Management System being developed by the capital market will tackle the lingering identity management issues.

This was stated by the Director General of the SEC, Mr. Lamido Yuguda, when he received members of the Committee on Identity Management for the Capital Market in Abuja weekend.

Yuguda described identity theft as a fraudulent practice of using another person’s name and personal information to obtain shares, credit and loans, among others, noting that the Commission decided to engage relevant stakeholders in a bid to resolve issues of identity management to tackle the problem of unclaimed dividends.

According to him, the problem of unclaimed dividends had to do with identity management, hence the Commission was engaging stakeholders to harmonise various databases of investors and facilitate data accuracy in the market as well as increasing investors’ education to stem the trend.

The SEC DG, who expressed satisfaction with the work of the Committee so far, added that stakeholder engagements would commence in earnest to ensure success of the project.

While thanking the members of the Committee for lending their support and resources to the Project, the SEC DG also expressed confidence in the success of the project that it would build a greater Nigeria and impact unborn generations.

In his remarks, the Chairman of the Committee, Mr. Aigboje Aig-Imoukhuede, commended the Commission on the recent release of Rules on Issuance, Offering Platforms and Custody of Digital Assets, saying that it was a step in the right direction.

Aig-Imoukhuede said the Committee’s work had exposed the need for standardisation of systems within the Nigerian capital market that would support Open Finance which the SEC could drive, adding that the SEC could leverage on the Committee to develop the framework for the Nigerian capital market.

According to Aig-Imoukhuede, “The Committee had clearly defined the task ahead in a Road Map and also identified that the Project would be carried out in stages supported by a consultant with recourse to the SEC on a regular basis. The Committee is committed to ensuring that the customer journey for investors is such that it would cause a revolution in the Nigerian capital market, thereby making our market attractive to the tech savvy and younger generation”.

The Nigerian capital market has been on a journey of innovation to drive an efficient capital market that would greatly impact the Nigerian economy.

The SEC had identified that lack of a proper identity management system for the Nigerian capital market was a plague in attaining its goal of efficiency and reducing the lingering issues surrounding identity management such as unclaimed dividends and cumbersome customer journeys.

Source: punchng