SEC, CBN APPROVES ECOBANK CUSTODY BUSINESS
1. Background Information:
- Ecobank Nigeria Limited has received approval from the Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN) to launch its custody business operations in Nigeria.
- The custody services in Nigeria will be provided through a special entity, Ecobank Nominees Limited, which will manage clients' assets separately from the bank's assets.
2. Key Players Involved:
- Ecobank Group: A Pan-African bank with existing custody services in Central Africa, Francophone, and Anglophone West Africa, managing over $4 billion in Assets Under Custody.
- Bolaji Lawal: Managing Director/Regional Executive of Ecobank Nigeria, who announced the launch of the custody business.
- Adebola Adedeji: Head of Custody/Managing Director of Ecobank Nominees Limited, who confirmed that the business has commenced operations and is already acquiring customers.
3. Core Offerings of the Custody Business:
- The custody services will include a range of financial and investment solutions such as settlements, fund administration, corporate actions processing, portfolio valuation, FX services, securities lending, cash management, escrow agency services, reporting, and multi-market access through Ecobank Group affiliates.
- The business aims to position Ecobank as a one-stop shop for premium financial services, offering investors seamless access to both African and international markets.
4. Specific Goals and Strategies:
- Identifiable Market Gap: Ecobank identified a gap in Nigeria's market for custody services and aims to fill it by offering efficient and secure asset management solutions.
- Technology Integration: The custody business will leverage world-class technology solutions to enhance the client experience throughout the investment cycle.
5. Broader Economic and Market Context:
- This move by Ecobank aligns with its strategy to expand its footprint in the African financial services sector, capitalizing on its Pan-African presence.
- The introduction of custody services in Nigeria is expected to further integrate the country's investors into the broader African and global markets.
6. Industry Reactions:
- The launch of the custody business is seen as a positive development for Nigeria's financial market, offering investors more options for asset protection and management.
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