SEC Issues Guidelines On The Operations Of Nominee Accounts By CMOs


Tuesday, October 29, 2019 / 9:38 AM / By SEC  / Header Image Credit: NITDA

Following the amendment of Rule 61 (2) of the Consolidated SEC Rules and Regulations 2013 on the Regulation of Nominee Accounts, the Commission hereby issues the under listed directives to facilitate effective compliance with the Rules.  

a)  A Capital Market Operator (CMO) who wishes to operate nominee accounts shall apply to the Commission and obtain a one-off approval to maintain nominee accounts on behalf of its client(s). This approval would enable CMO's operate subsequent nominee accounts on behalf of prospective clients.

b)    Once the one-off approval is granted, Capital Market Operators are required to commence filing of quarterly returns, effective from quarter ended 31st December, 2019.  All filings must reach the Commission not later than 30 days from the end of the quarter. Failure to file returns would attract a penalty of N100,000 at the first instance and a further sum of N2,000 per day for everyday the violation continues.  

c) Capital Market Operators currently operating nominee accounts without the approval of the Commission are required to disclose same not later than 31st October, 2019 and obtain a no objection from the Commission. The disclosure should include a list of the nominee accounts, number of beneficiary(ies) in each of the nominee account and estimated value of clients' assets.


The returns should be filed in the format below to  


Account Name

of Beneficiary(ies)

of Client Assets














Proshare Nigeria Pvt. Ltd.

Related News

1.    SEC Proposes New Rule on Nominee Companies; Major and Sundry Amendments to Its Rules and Regulations

2.      SEC Publishes New Rule on Direct Cash Settlement, Electronic Offering And Transmission of Shares

3.      SEC Issues Exposure Of New Rule On Registration Of Fixed Income Existing Securities

4.      SEC Issues Circular On Unclaimed Dividends Of Defunct Afribank Plc

5.      SEC Reiterates Its Mandatory For CMOs To Have Managing Directors And Compliance Officers

6.      SEC Proposes New Rule On Share Transmission And Sundry Amendment To Rule on Annual Report

7.      SEC Commences Cross-Reference Checklist Review of Bond and Fixed Income Applications

8.  SEC's Outlook On Recent Legal Decisions Impacting Enforcement Effort And Relationships With Partners

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

Related News