02-10-2015 by 
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Following the release of the Provisional List Of Capital Market Operators That Have Complied With Minimum Capital Requirement In Line With The Deadline by the Security and Exchange Commission, SEC, there may be panic or confussion by those who may not find their fund managers, brokers or other capital market operators on the list. According to the SEC, there is no need for alarm as the regulatory authority has proactively released the "Procedure For Moving Stock Account", which details what affected investors should do.

Below is the details of the proceedure which can also be accessed via Procedure For Moving Stock Account

 

COMPLIANCE WITH MINIMUM CAPITAL REQUIREMENT BY CAPITAL MARKET OPERATORS- PROCEDURE FOR MOVING STOCK ACCOUNT



The Market-wide Implementation Committee on new minimum capital requirement for Capital Market Operators (CMOs) further advises the investing public to verify the compliance status of their preferred CMO by checking the list posted on the Securities and Exchange Commission (SEC) website.

 

The following guidelines should be adhered to by investors, target firms and the Central Securities Clearing System (CSCS) where an investor wishes to move his stock account from an under-capitalised Broker/Dealer to a Broker/Dealer or Broker that has complied with the minimum capital requirement (capitalised firm):

 

  1. Where the Broker/Dealer has not met the new minimum capital requirement, the investor should approach a capitalised Broker/Dealer or Broker for engagement
  2. The investor should undergo a Know Your Customer (KYC) process with the new firm
  3. The Broker/Dealer or Broker should open a CSCS account for the investor using the investor’s existing Clearing House Number (CHN) from his former Brokerage Firm
  4. The investor should give a mandate to the target firm to transfer his/her account from the under-capitalised firm to the Target firm (capitalised firm).
  5. The investor should submit evidence of purchase of the shares such as contract notes, receipts of purchase, dividend stubs or confirmation of holdings from the Registrar’s office, signed by the Managing Director of the Registrar firm to the target firm
  6. The Target firm (capitalised firm) should initiate inter-member transfer request.
  7. The Managing Director of the Target firm (capitalised firm) shall go to the CSCS to sign off the indemnity form  
  8. The CSCS shall process the request and notify the Broker/Dealer or Broker through the CSCS website.

 

For further inquiries/clarification please send an email to sec@sec.gov.ng or call the following numbers: +234 94 621168; +234 94 621142; +234 94 621125 and +234 94 621133

 

SIGNED

COMMITTEE SECRETARIAT

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