Abuja - Securities and Exchange Commission (SEC) has confirmed that it is investigating allegations of corporate governance breaches at Ecobank Transnational Incorporated.
“We assure the investing public that the investigation will, as usual, be thorough and rigorous and will ensure adequate protection of the investor,” the capital market regulator said in a brief statement on Monday.
According to SEC, an Ecobank client, Arial Capital Management, had used capital from another company as collateral for a margin loan from Ecobank.
After suspending Arian, SEC said it had asked Ecobank for an explanation but the bank did not reply.
Under the said transaction, Arian Capital Management Ltd (a fund manager) advanced margin loan to Avil Services Ltd which was secured by 555 555 units of First Bank of Nigeria Plc shares belonging to Avil Services Ltd.
Earlier this year, SEC suspended Ecobank Plc from acting as a receiving banker and from all capital market activities.
- CAJ News