SEC Mandates Public Companies to Publish Financials Online

The Securities and Exchange Commission (SEC) has issued a directive requiring all publicly listed companies to publish their financial statements on their official websites starting from January 2025.

This move aims to enhance transparency and ensure seamless public access to crucial financial information, thereby empowering investors to make informed decisions.
The SEC circular, issued on Thursday, emphasized the importance of timely disclosure and adherence to regulatory guidelines. It highlighted that the current practice of submitting periodic returns to the Commission and relevant exchanges without simultaneous online publication violates Rules 39 and 41 of the Commission’s regulations.

The circular stated,

“The Securities and Exchange Commission has observed that public companies file their periodic returns with the Commission and relevant securities exchanges without simultaneously publishing them on their websites.
“This omission is a contravention of Rules 39 and 41 of the Commission’s Rules and Regulations.”
On the importance of timely disclosures, the SEC stated, “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.
“It is also important to reiterate in this regard that timely disclosures remain a key component of shareholders’ engagement.”

The SEC stressed that readily available financial information is essential for investors to make sound investment choices. Timely disclosures also play a crucial role in fostering shareholder engagement and building investor confidence in the Nigerian capital market.

The Commission warned that non-compliance with this directive will result in appropriate sanctions. This measure underscores the SEC’s commitment to upholding transparency, protecting investor interests, and fostering a robust and trustworthy capital market in Nigeria.