SEC Tasks Capital Market Operators On Recapitalisation Deadline

The Securities and Ex
change Commission (SEC) has urged capital market operators yet to comply with the new minimum capital requirement to do so before the September 30, 2015 deadline.
A statement by the commission on Friday reiterated its commitment to the deadline and affirmed it would not grant any further extension.
The statement added that the commission had in December 2013 approved the new minimum capital requirements for capital market operators aimed at improving operators’ baseline infrastructure, market access and service delivery.
Following the approval by SEC Board, the capital requirement for broker/dealer was increased from N70 million to N300 million. For broker only the capital obligation was raised from N40 million to N200 million while for dealers it was raised from N30 million to N100 million.
The minimum capital requirement for issuing house was also increased from N150 million to N200 million while that of underwriter from N100 million to N200 million.
For a registrar, the minimum capital obligation was raised to N150 million from N50 million while for trustee business, the capital requirement was moved up to N300 million from N40 million, rating agency was increased from N20 million to N150 million, corporate investment adviser remained unchanged at N5 million.
From an initial capital requirement of N500,000 every individual investment adviser is expected to have at least N2 million as capital while fund portfolio manager’s minimum capital requirement was peaked at N150 million from N20 million.
The statement added that the changes were to enhance corporate governance, improved liquidity and granting investor confidence in the capital market.

Philip Okparaji