Former BGL Employee Challenges Suspension from Capital Market

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Goddy Egene

A capital market operator and former employee of BGL Asset Management Limited (BAML), Mr. Victor Inyang, is set to appeal his suspension from the capital market activities for two years by the Securities and Exchange Commission (SEC).

The suspension came via the decision of Administrative Proceedings Committee (APC) of the SEC delivered in APC/1/2016: Afolabi Gabriel Oluwaseyi and 9 others versus BGL Securities Ltd and 22 others last May.

Inyang, who was sued as the 15th Respondent in the above-mentioned case and banned for a period of two years from engaging in capital market activities and ordered to pay a penalty of N100,000 for a breach of Rule 1(iii) of the Code of Conduct for Capital Market Operators and Their Employees as contained in the SEC Rules and Regulations made pursuant to the Investment and Securities Act 2007, with regards the operating and marketing of BGL Plc’s Guaranteed Premium Notes (GPN) and Guaranteed Consolidated Notes (GCN).

However, the law office of Abimbola Akeredolu , solicitors to Inyang, has filed a notice of intention to appeal against the decision of the APC and SEC.
Documentx made available to THISDAY showed that Inyang’s appeal is based upon a number of grounds.

According to the solicitors, Inyang was in the employ of BGL Plc from March 2, 2014 to March 27, 2015, a period of just over one year ‒ in the capacity of MD of BAML.
“Of the 10 complainants in the case, the complaints of six were directed at BAML. The investments of five of these six complainants took place in 2012 (5th complainant), 2010 (6thcomplainant), 2012 (7th complainant), 2010 (8th complainant) and 2013 (10th Complainant), which clearly predate Inyang’s employment with BAML. The investment of the 9th complainant took place in March 2015 through a staff of another subsidiary of BGL Plc not under the supervision of Inyang. The SEC’s own target inspection reports state that the GCN and GPN products were not managed by BAML but rather by the Treasury Department of BGL Plc.

For products that had apparently been in operation by BGL Plc from as far back as 2008, Inyang clearly did not have or make any input into the design, institution, approval-seeking process or implementation of the GCN and GPN products. Inyang did not market the GPN and/or GCN schemes. All charges of the mishandling of client complaints highlighted by the SEC took place after Inyang had left the employment of BAML,” the documents noted.

According to the lawyers, Inyang has chosen to file an appeal against the decision of the APC of SEC because he unequivocally believes that he has suffered a miscarriage of justice, having submitted himself to the APC with evidence of non-involvement in the facts of the said matter and complicity therein.