The Securities and Exchange Commission (SEC) has issued a directive mandating all registered capital market operators (CMOs) to complete the renewal of their registration process on or before April 31, 2021, stating that CMOs yet to renew their registration at the expiration of the deadline shall not be eligible to operate in the capital market.
SEC in a circular dated May 10, 2021, and signed by the management of the Commission, said all CMOs were required to have completed the renewal process on or before April 30, 2021.
Consequently, the commission stated that all CMOs are expected to note that late filing for renewal of registration shall only be entertained from May 1, 2021, to May 31, 2021, while the names of CMOs that have renewed their registration shall be published on the SEC website/newspapers and communicated to the relevant securities exchanges and trade associations for their notification.
The SEC had on March 23, 2021, issued a circular to the general public and CMOs in particular, of the re-introduction of the periodic renewal of registration by CMOs.
The commission stated that the re-introduction of renewal of registration is premised on the need to have a reliable data bank of all CMOs registered and active in the Nigerian capital market, to provide updated information on operators in the market for reference and other official purposes by local and foreign investors, other regulatory agencies and the general public. SEC added that the renewal will help to increasingly reduce incidences of unethical practices by CMOs such as may affect investors’ confidence and impact negatively on the Nigerian market and to strengthen supervision and monitoring of CMOs by the commission.
“Consequently, the commission said it has amended its rules and reintroduced the requirement for yearly renewal of registration by all CMOs. This process will be carried out electronically to ensure efficiency. All CMOs were directed by the SEC to complete the process of renewal of registration for 2021 on or before 30th April 2021.”
The commission had recently unveiled a plan to register and actively monitor brokers selling stocks for foreign companies in line with its investors’ protection and market transparency mandates.
Executive Commissioner Operations of the SEC, Dayo Obisan, said SEC intends to license firms offering foreign stocks under a ‘digital sub-broker regulation, which should provide a form of clarity to their activities adding that the requirement will ensure regulatory responsibilities in on-boarding clients, custody of assets among others.
