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SEC directs brokers to comply with disclosure rules

Securities and Exchange Commission (SEC)

Securities and Exchange Commission (SEC)

The Securities and Exchange Commission (SEC) has directed all capital market operators registered as brokers, dealers or broker dealers to henceforth comply with the Rule 56 (1&2) (c) of the Rules and Regulations of the commission.

 

This provides that “registered brokers/dealers shall disclose to the commission any dealings in a security valued at a minimum of 500,000 units executed in a single deal or in multiple deals on the same day on behalf of his clients or on his own account not later than 24 hours after such activity.”

 

SEC in a circular to all brokers and dealers noted that in line with the above rule, the commission requests all capital market operators registered as brokers, dealers or    broker dealers to henceforth comply with the rule and forward the required returns to the commission’s template.

The implementation of the template, according to SEC, will take effect from January 2, 2021.

The commission recently said it was set to withdraw the registration certificates of about 157 inactive capital market operators.

In a circular obtained from SEC’S website tagged ‘Pre-Notice on Cancellation/Withdrawal of Certificates of Registration of Inactive Capital Market Operators,’ SEC noted that the 157 capital market operators, which were registered for various functions in the Nigerian capital market, had failed to render their statutory returns to the commission, had their capital eroded while others were affected by policy changes.

SEC said: “In view of this fact, the commission hereby request  the affected CMOs to submit presentations to the Commission, on or before 30th November, 2020, why their registration should not be canceled.”

The affected firms among others included 2AS Amao Consult, Adamawa Securities Limited, AIMS Asset Management Limited, AIQ Venture Capital Fund Managers Limited, Allbond Investment Limited, Amalgamated Capital Funds Ltd, Arnold Portfolio Co, Associated Investment Trust Co. Limited, Bayhead Alpha Capital Ltd, Bendu Peter Ser. Nig. Ltd, Bluebird Capital Limited, and Boston Capital Investments Limited

Other are Brickfield Road Associates Ltd, Bytofel Trust & Securities Ltd, Cadington Securities Ltd, Capital Partners Limited, Capital Structures Ltd, CDL Asset Management Ltd, Circular Trust Ltd, Citi Asset Management Limited, Citizens Inv. & Sec. Ltd, City Investment Management Ltd, Consolidated Discount Ltd, Consolidated Inv. Limited, Consult & Capital Limited, Cornerstone Asset Management Ltd, Corporate Diamond Securities and investments Limited, Custodian & Allied Insurance Plc, Cutix, Dakal Services Limited, Dambale (Nigeria) Limited and De-Canon Investment Ltd

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