Nigeria brings in custody rule for $9.7bln funds industry

Bid to protect investors and deepen the country's capital market

  
A man counts U.S. dollar banknotes at a currency exchange shop in Beirut, Lebanon March 2, 2021. Image used for illustrative purposes

A man counts U.S. dollar banknotes at a currency exchange shop in Beirut, Lebanon March 2, 2021. Image used for illustrative purposes

REUTERS/Mohamed Azakir

ABUJA- Nigeria has introduced a custody rule for its 4 trillion naira ($9.7 billion) fund management industry, in a bid to protect investors and deepen the country's capital market, its Securities and Exchange Commission said on Sunday.

Before the new rule, investment managers warehoused securities and cash, which meant that investors could lose in the event of one being declared bankrupt or insolvent.

(Reporting by Felix Onuah and Chijioke Ohuocha; Editing by Alexander Smith) ((chijioke.ohuocha@thomsonreuters.com; +234 703 4180 621; Reuters Messaging: chijioke.ohuocha.thomsonreuters@reuters.net))


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