The Securities and Exchange Commission (SEC) has issued a directive requiring all publicly-listed companies to publish their financial statements on their websites starting January 2025. The commission warned that failure to comply with this directive would attract sanctions.
In a statement released on Tuesday, SEC noted that while public companies routinely file periodic returns with the commission and relevant securities exchanges, many fail to make these financial statements accessible on their websites, contravening Rules 39 and 41 of the Commission’s Rules and Regulations.
“The rationale for the publication of periodic returns on their websites is to provide seamless access by the public to such information, which would serve as a guide to making sound investment decisions,” SEC stated.
The commission emphasized the importance of timely disclosures as a critical aspect of shareholder engagement and investor confidence.
SEC has outlined strict enforcement measures for companies that fail to comply with the directive. Effective January 2025, any public company that does not publish its periodic financial returns on its website alongside submissions to the SEC and relevant securities exchanges will face penalties.
“Timely disclosures are a key component of shareholder engagement,” the statement reiterated, adding that public companies must align with these rules to avoid regulatory action.
Meanwhile, SEC also addressed fintech operators in the capital market, emphasizing the need for compliance with regulatory frameworks when raising funds.
Emomotimi Agama, SEC’s Director-General, reiterated the commission’s commitment to safeguarding investor interests amidst the growing adoption of fintech solutions in the capital market.
“Fintech operators must adhere to the rules of the capital market, as the commission remains steadfast in protecting investors,” Agama stated.
This directive underscores SEC’s dedication to transparency and investor protection while promoting accountability among public companies and market operators.