- Five insurance companies were fined N74 million by the Nigerian Exchange for their late submission of financial reports
- The goal of NGX Regulation Limited’s X-Compliance Report transparency initiative is to protect investors and maintain market integrity
- According to the NGX Rulebook (Issuers’ Rules), businesses who are listed on the exchange must timely submit their financial statements
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
The Nigerian Exchange has fined five insurance companies N74 million for failing to submit their financial reports on time.
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This was revealed in the local stock exchange’s most recent X-Compliance Report, which was made public on Friday.
By offering compliance-related data on all listed businesses, NGX Regulation Limited’s X-Compliance Report transparency effort aims to preserve market integrity and safeguard investors.
According to the Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of NGX (Issuers’ Rules), companies listed on NGX are required to submit their financial statements on time. Defaulting results in a fine.
By offering compliance-related data on all listed businesses, The Punch reported that NGX Regulation Limited’s X-Compliance Report transparency effort aims to preserve market integrity and safeguard investors.
According to the Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of NGX (Issuers’ Rules), companies listed on NGX are required to submit their financial statements on time. Defaulting results in a fine.
The most recent report stated that several insurance companies, including Guinea Insurance Plc, Universal Insurance Plc, Regency Alliance Insurance, Lasaco Assurance, and African Alliance Insurance Plc, had failed to file their 2023 Annual Financial Statement.
Due to their failure to submit its 2023 AFS, Lasaco was fined N8.7 million. The final result was turned in on September 25, 2024. On September 16, 2024, Regency Alliance Insurance Plc filed its results, and as a result, was fined N7.8 million.
For failing to submit its 2023 annual report by the deadline, Guinea Insurance was fined N3.4 million, and Universal Insurance Plc was fined N2.8 million. On August 3rd and July 28th, 2024, their final results were sent to the exchange.
Similarly, Universal Insurance was also fined N3 million for failing to submit its unaudited financial statement for the first quarter of 2024. In the end, the report was submitted on July 30, 2024.
When African Alliance Insurance Company eventually filed its 2022 annual report on November 22, 2023, it was late and was fined N48.6 million, the highest amount.
This was the company’s first financial statement to be sent to the exchange in almost a year.
For failing to meet its obligations to clients, especially annuitants, African Alliance’s board and management were recently sacked by the National Insurance Commission, which regulates the insurance sector.
NGX Unveils E-Platform for Nigerians to buy shares
Legit.ng reported as banks begin the push to raise capital following the directive of the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC) and the Nigerian Exchange Group have unveiled digital solutions for the capital-raising process, focusing on public offers and rights issues.
At the unveiling, the NGX stated that the platform represents a major advancement in digitizing the capital-raising process for issuers.
Experts say stakeholders would benefit from the enhanced efficiency, streamlined and due diligence capabilities, ease of use and accessibility, faster information-sharing, and seamless compliance with regulatory requirements embedded in the platform.
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Source: Legit.ng
