Stockbrokers Demand Downward Review Of Capital Base

The Association of
Stockbroking Houses of Nigeria (ASHON) has demanded for the downward review by the Securities and Exchange Commission (SEC) of minimum capital base of stockbroking firms.
Speaking to newsmen in Port Harcourt recently, the ASHON’s chairman, Mr. Emeka Madubuike, said SEC wanted full compliance on or before December 31, 2014 by stockbroking firms, but, he stressed that chances were that the operators in the business would likely secure to N200 million.
He said registrar in capital market, the minimum capital obligation was raised to N150 million from N50 million, while those in trustees business capital requirement was moved up to N300 million from N40 million.
The ASHON chairman further stated that rating agency capital requirement was increased from N20 million to N150 million, while capital requirement for corporate investment adviser remained unchanged at N5 million.
He said from an initial capital requirement of N500,000 for every individual investment adviser was expected, according to SEC, to have at least N2 million capital base, while fund portfolio manager’s minimum capital requirement was raised up to N150 million from N20 million.
Madubuike said the incensement had affected the association members businesses, stressing that stockbroking firms minimum capital should be determined by the level of business they were engaged in and not arbitrary rules of SEC.

Philip Okparaji