SEC commences inspection of Registrars


- May not renew licences for non-compliance



Proshare NI

June 11, 2008 at 17:00 GMT


The committee set up by Securities and Exchange Commission (SEC) has commenced the inspection of Registrars on the issue of compliance as regards their general operations and may not renew the licenses of those found wanting. A source close to Proshare NI confirmed this today in Lagos Nigeria.


Our source confirmed that the committee had observed lapses on the part of some of the Registrars, and those found not to be complying may have their licenses not renewed.


“We visited a lot of them today and we did a lot yesterday and have observed some lapses and if they don’t straighten out, SEC may not renew their licenses” the sources said.


The source further confirmed to Proshare NI that the inspection visit was based on the general operations of these Registrars; which include the way they attend to Stockbrokers, investors, delay in verification of share certificates and so on.


Though the source affirmed that the lapses observed were being addressed at this particular point in time and those affected are expected to comply within the period of one month. “If they don’t then at the point of renewal of their licenses, it will be difficult for them” the source said.


Prior to this time, SEC had set up a Committee on Registrars Operations and Communication Technology (ICT) Infrastructure and had urged Registrars to upgrade their ICT in order to serve investors effectively; when it was discovered that some of them have not fully automated their operations.  


With this trend, SEC intends to do away with operators who are not complying with their directives on the issue of IT upgrade and automation of their activities.


As earlier reported by Proshare NI, the commission is working in conjunction with the Central Securities Clearing System Limited (CSCS) to check the activities of Registrars in the issue of clearing and settlement of transactions in the stock market. 


Investors had suffered greatly from the activities of Registrars in the area of dispatch of share certificates and other related issues.


As at the time of filling in this report, Lanre Oloyi, Head, Media at the Exchange Commission confirmed to Proshare NI that the Committee set up by SEC had actually commenced their operations.

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