Insurance

NSE fines six insurance firms N54.3m for contraventions

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Chuks Udo Okonta

Six insurance firms were fined N54.3 million by the Nigerian Stock Exchange (NSE) in 2019 for various contraventions, Inspenonline can report.

Data obtained from the X-Compliance Report published on NSE website on July 10, 2020, revealed that the firm’s were sanctioned for contraventions ranging from default in filing 2018 audited financial reports; failure to file first quarter 2019 reports and unauthorised publication of annual general meeting notice.

The NSE posited that the X-Compliance Report is a transparency initiative which is designed to maintain market integrity and protect investors by providing compliance related information on all listed companies.

It maintained that companies that are listed on The Exchange are required to adhere to high disclosure standards which are prescribed in the Rulebook of The Exchange, 2015 (Issuers’ Rules), and other Rules of The Exchange, from time to time, stressing that financial information, which is periodic disclosure, as well as on-going material information disclosure should be released to The Exchange in a timely manner to enable it efficiently perform its function of maintaining an orderly market. The X-Compliance Report is updated every Friday at the close of market, it said.

According to the Exchange, it identified the companies listed on Schedule 3 as companies that fell short of the minimum listing standards in terms of timely disclosure of their audited annual financial statements and have Missed Regulatory Fillings (MRF) or are Awaiting Regulatory Approval (AWR) from their primary regulators.

It said the sanctions for non-compliance with periodic financial disclosure obligations are clearly spelt out in its Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers’ Rules).

On non-rendition of quarterly financial statements for Q1 2020, it said companies listed on The Exchange are required to file their quarterly accounts within 30 days after the end of the quarter in accordance with the Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers’ Rules).

“The sanctions for non-compliance with periodic financial disclosure obligations are clearly spelt out in the Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers’” it said.

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