December 4, 2020
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SEC issues new guidelines on registration of new capital market operators

By on October 23, 2020 0 100 Views

By Samuel Bankole

The Securities and Exchange Commission (SEC) has set fresh guidelines for the registration of new capital market operators, stating that from January 2021, the pre-registration examination will be conducted for intending capital market operators.

SEC in a statement said that such pre-registration examinations conducted by the Nigerian Capital Market Institute would include essay questions.

The fresh guidelines also stipulate that “Chief Executive Officers of capital market operators who present sponsored individuals before the Registration Committee for interview would be required to provide a detailed brief about their companies.”

Such details, according to SEC should highlight the contribution of the companies to the development of the Nigerian capital market.

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Those who want to transfer their registration to a proposed capital market operator (new firm) would also be required to undertake a fresh interview against previous practice where they are granted waivers.

The provision of the Investments and Securities Act 2007, section 38 (2) says; “The Commission shall prescribe the conditions for registration including the level of knowledge and skill required to operate in the capital market.”

Details of the new guidelines issued on Thursday by SEC below:

“In line with Section 38(2) of the Investments and Securities Act 2007 which empowers the Securities and Exchange Commission (“the Commission”) to prescribe conditions for registration of capital market operators, including the level of knowledge and skill required to operate in the Nigerian capital market, the Management of the Commission has approved the following:

“Managing Directors/Chief Executive Officers of capital market operators who present sponsored individuals before the Registration Committee for interview would be required to provide a detailed brief about their companies, highlighting the contribution of the companies to the development of the Nigerian capital market.

“All registered sponsored individuals seeking to transfer their registration to a proposed capital market operator (new firm) would henceforth be required to undertake a fresh interview as against the current practice where they are granted an exemption.

“Effective from January 2021, the pre-registration examinations for intending capital market operators conducted by the Nigerian Capital Market Institute would include essay questions,” SEC stated in a notice posted on it website.

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