The Nigerian Exchange Limited (NGX) has fined six insurance firms N89.6 million for failure to file their financial statements after the regulatory due date.
Checks by Nairametrics showed that the companies were sanctioned during the year 2021 for their inability to meet the regulatory requirements ranging between FY’2020 and the second quarter of 2021.
The companies include Royal Exchange Plc, African Alliance Insurance Plc, Universal Insurance Plc, LASACO Assurance Plc, Coronation Insurance Plc and Mutual Benefits Assurance Plc.
Further checks showed that African Alliance Insurance Plc led with N34.6 million of the fines while Royal Exchange Plc followed with a fine of N16.3 million, LASACO Plc was fined N15.1 million, Universal Insurance Plc got N9.1 million fine while Mutual Benefits Assurance Plc followed with N7.7 million and Coronation Insurance Plc with N6.8 million fine.
Breakdown of the fines
African Alliance Insurance Plc got fined N28.2 million for 2020 audited financials, N6.3million for Q1’2021 financials and N100,000 for Q2’2021 financials.
Royal Exchange got fined N9.4 million for 2020 audited financials, N6.4 million for Q1’2021 financials and N500,000 for Q2’2021 financials.
LASACO got a N9 million fine for 2020 audited accounts and N6.1million for Q1’2021 financials.
Universal Insurance Plc got fined N9.1 million for 2020 audited accounts.
Mutual Benefits Assurance Plc got N7.7 million for 2020 audited financials.
Coronation Insurance Plc got fined N6.8 million for 2020 audited accounts.
What you should know
The Exchange in its X-Compliance report explained that the initiative was designed to maintain market integrity and protect the investors by providing compliance-related information on all listed companies.
The report thus stated that “Companies that are listed on the Exchange are required to adhere to high disclosure standards which are prescribed in Appendix 111 of the Listing Rules.
“Financial information which is periodic disclosure and on-going material events disclosure should be released to The Exchange in a timely manner to enable it efficiently perform its function of maintaining an orderly market”.
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