SEC URGES REGISTRARS TO ADOPT TECH FOR UNCLAIMED DIVIDENDS
Dr. Emomotimi Agama, the director General the Securities and Exchange Commission, has urged the registrars to adopt technology in addressing the problem of unclaimed dividends in the capital market.
During a meeting with the executives of the Institute of Capital Market Registrars, SEC officials emphasized the need for technology adoption to address the issue of unclaimed dividends.
FRAMEWORK FOR RECAPITALIZATION
The SEC announced plans to release a framework to guide the capital market through the proposed recapitalization exercise by banks. According to the officials:
- Proactive Measures: “We are on top of the issues around the recapitalization exercise. Very soon, we will come up with a framework to guide the market.”
- Interactive Approach: “The idea is to interact with you all. There may be things hanging, and due to the transition, we do not want to miss anything. It will still be attended to in the interest of the market.”
- Collaborative Effort: “We are in this together, and we will continue to work and do our best. This is our constituency, and we will do our best. We crave your cooperation to help us deal with major challenges.”
ADDRESSING UNCLAIMED DIVIDENDS
The SEC highlighted the urgency of tackling unclaimed dividends, describing it as a significant issue:
- Embrace Technology: “Unclaimed dividends are a monster that we must deal with now. Whatever it will take to deal with it, we must do it. We must embrace technology as one of the ways to deal with it.”
- Industry Collaboration: “Let us put our thoughts together and provide a workable solution; let us ensure that this becomes a thing of the past. We need to provide a solution, and the time is now. As custodians, we implore you to provide practicable steps to address this issue.”
SUPPORT FROM SEC OFFICIALS
Bola Ajomale, SEC’s acting executive commissioner of Operations, supported the push for technology adoption:
- Effective Approach: “Technology adoption is the most effective approach to guaranteeing punctuality and sanitizing the system.”
In summary, the SEC is urging registrars to adopt technological solutions to resolve unclaimed dividends and is preparing a framework to guide the upcoming recapitalization exercise in the banking sector, emphasizing collaboration and proactive measures.
