Capital market operators get new registration requirement

The Securities and Exchange Commission has announced a new requirement for Capital Market Operators seeking to renew their annual registration.

As part of the renewal process, CMOs will now be required to submit evidence of their registration with a trade group.

In a statement made available to our correspondent on Sunday, this directive, signed by the SEC’s Director of Registration, Exchanges and Market Infrastructure Department, Hafsat Rufai, was issued on behalf of the Commission’s Director-General.

According to the statement, the renewal process for 2025 will begin on January 1, 2025, adding that the deadline for completing the renewal process is January 31, 2025.

“All CMOs applying for renewal of registration are required to include their 2025 annual receipt from their respective trade groups as part of their application. “Note that CMOs without valid registration will be penalized and may be excluded from carrying out capital market activities,” the statement read.

The Chairman of the Association of Securities Dealing Houses of Nigeria, Sam Onukwue, welcomed the new directive, describing it as a positive development for the industry. “It is a welcome development, and we duly commend the SEC for this directive. It will strengthen trade groups in their advocacy role as well as in promoting market transparency and professionalism,” Onukwue said.

It added that market analysts believe that the new requirement is a move to enhance accountability and adherence to industry standards. A Custom Street analyst noted, “SEC believes that registration with a trade group will help to ensure that capital market operators adhere to industry standards and best practices. The Commission is committed to protecting investors and promoting the development of the Nigerian capital market. This new requirement is an important step towards achieving these goals.”

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