- The Securities and Exchange Commission has directed publicly listed companies to publish their financial statements online
- SEC said the directive is to ensure transparency and seamless public access to the companies’ financial information
- It said there would be penalties for non-compliance with the directive
The Securities and Exchange Commission (SEC) has directed all publicly listed companies to publish their financial statements on their official websites, effective January 2025.
In a circular issued on Thursday, December 19, the SEC said companies’ omission of publishing their financial statements online is a contravention of the commission’s rules and regulations, warning that non-compliance with the directive would attract sanctions.
SEC noted that the directive is to ensure transparency, timely disclosure, and seamless public access to financial information, which is critical for making sound investment decisions.
The commission noted that while public companies routinely submit their financial returns to regulatory bodies, many of them do not make these documents accessible to the investing public via their websites.
It stressed that the omission undermines investor confidence and violates disclosure requirements.
The circular read, “The Securities and Exchange Commission has observed that public companies file their periodic returns with the commission and relevant securities exchanges without simultaneously publishing them on their websites.
“This omission is a contravention of Rules 39 and 41 of the Commission’s Rules and Regulations.
“The rationale for the publication of periodic returns on their websites is to provide seamless access by the public to such information, which would serve as a guide to making sound investment decisions.
“It is also important to reiterate in this regard that timely disclosures remain a key component of shareholders’ engagement.
“Any public company that fails to comply with the requirement of the referenced rules in respect of the filing of its periodic returns with the Commission, relevant securities exchanges, and the simultaneous placement of the same on its website would be penalised as appropriate.”
SEC fine banks, clamped down on unregulated crypto exchanges
The commission has often reiterated its commitment to protecting the investing public. It has taken steps to guarantee this, including fining banks for violating regulatory guidelines and clamping down on unregulated cryptocurrency exchanges.
In September, SEC’s Director-General, Dr Emomotimi Agama, said the commission would begin a massive crackdown on cryptocurrency exchanges, individuals, and companies operating without regulations.
The commission said the crackdown aims to protect investors in the country and reassure international investors that Nigeria is a safe place to invest their funds.
In October, the SEC alongside the Central Bank of Nigeria (CBN) sanctioned 10 banks and imposed fines to the tune of N1.502 billion within the first six months of 2024 for violating foreign exchange guidelines and other regulatory offences.
Tinubu endorsed cryptocurrencies before Trump, says head of Nigeria’s SEC
Meanwhile, TheRadar reported that the Director-General of the Nigeria Securities and Exchange Commission (SEC), Dr Emomotimi Agama, said President Bola Tinubu long endorsed cryptocurrencies before President-elect Donald Trump did.
Agama said this at the sidelines of the African Financial Industry Summit, held on December 9 and 10, in Casablanca, Morocco.
