NSE fines FBN Holdings, FCMB , Sterling, Fidelity, others over late results

The Nigerian Stock Exchange (NSE) has sanctioned some banks along other listed companies on the exchange for failing to meet the deadline for the submission of their audited report and accounts for last year.

The list of the affected listed companies indicated that FBN Holdings Plc – the holding company for First Bank of Nigeria and its former subsidiaries – will pay ₦2.1 million fine for the duration of its delay, Fidelity Bank Plc, which just released its results last week, ₦2.7 million.

Sterling was also slammed with a fine of ₦1.3 million for the delay of its 2017 audited financial statements.

Wema Bank and First City Monument Bank Holdings (FCMB Holdings) were equally fined ₦800,000 and ₦100,000 respectively for flouting the postlisting rule of the market.

Sovereign Trust Insurance Plc, ₦2.1 million, while Meyer Plc ₦2.1 million.

The Exchange also imposed a sanction on Presco, which was fined pay ₦1 million fine for failing to submit its audited report within the deadline and another ₦300,000 for failing to submit its first quarter results for 2018.

The Nation newspaper had earlier reported that the Exchange sanctioned seven companies and reserved the penalty of 32 others, which sanctions were undergoing administrative review to determine what they will pay.

The sanctioned companies included Vitafoam Nigeria, N800,000; Academy Press, ₦35 million; International Breweries ; Abbey Mortgage Bank, ₦700,000.

Post-listing rules at the NSE require quoted companies to submit their audited earnings reports, not later than three months or 90 calendar days after the expiration of the period.

The deadline for submission of annual report for companies with Gregorian calendar business year ended December 31, 2017 was March 31.

Under the rules at the Exchange, late submission under the first instance of 90 days could attract ₦9 million, the additional period of 90 days will attract ₦18 million while such delay beyond the first 180 days to the next 180 days could attract as much as ₦72 million, bringing fines payable by a defaulting company within a year to ₦99 million.

A late submission attracts a fine of N100,000 per day for the first 90 calendar days of non-compliance, another ₦200,000 per day for the next 90 calendar days and a fine of ₦400,000 per day thereafter until the date of submission.

For the 2016 business year, companies paid more than N400 million as fines for late submission of accounts. The Nation reported revealed that fines for the default filings for the 2017 business year may exceed ₦500 million.

Companies that had been marked for sanctions include Nigerian German Chemical, Roads Nigeria, Afromedia, AG Leventis Nigeria, African Alliance Insurance, Cornerstone Insurance, Diamond Bank, Fortis Microfinance Bank, Great Nigeria Insurance and Linkage Assurance.

Also on the list were Morison Industries, Multiverse Mining and Exploration, Mutual Benefits Assurance, Niger Insurance, Oando, Omoluabi Mortgage Bank, RT Briscoe, Royal Exchange, Skye Bank, Staco, Standard Alliance, Sunu Assurances Nigeria-formerly Equity Assurance, Union Bank of Nigeria, Unity Bank, VeritasKapital Assurance and Universal Insurance Company.

The Exchange started implementation of the rules on submission of periodic reports and results and the enhanced sanction regime on January 1, last year. Under the rules, quoted companies are required to file their unaudited

quarterly accounts with the NSE not later than 30 calendar days after the relevant quarter, and publish it within five business days after the date of filing, in at least two national daily newspapers, and post it on the company’s website, with the web address disclosed in the newspaper publication.

Also, an electronic copy of the publication shall be filed with the Exchange on the same day as the newspaper publication.

Where the company chooses to audit its quarterly accounts, it is required to file such accounts not later than 60 calendar days after the relevant quarter, and publish it within five business days after the date of filing, in at least two national daily newspapers and post it on the company’s website, with the web address disclosed in the newspaper publications.

Such a company will also be required to file electronic copy of the publication with the Exchange on the same day as the newspaper publication.

For annual audited accounts, companies are required to file their audited annual report and accounts with the Exchange not later than 90 calendar days after the relevant year end, and published in at least two national daily newspapers not later than 21 calendar days before the date of the annual general meeting, and posted same on the company’s website with the web address disclosed in the newspaper publications. Also, an electronic copy of the publication shall be filed with the Exchange on the same day as the publication.

Besides, a defaulting company will be tagged with the “Below Listing Standard” (BLS) or any other sign or expression to indicate that the company has failed to submit its accounts within the stipulated period and this tag shall remain for as long as the company fails to file its accounts.

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