SEC Issues Guidelines to Facilitate Effective Compliance With SEC Rules 57 and 58 on Net Capital

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Thursday, January 30, 2020 / 2:45 PM / SEC / Header Image Credit: Paul Chehade

  

The Commission hereby issues the under listed guidelines to facilitate effective compliance with SEC Rules 57 & 58 on Net Capital.

  1. Every broker-dealer shall on monthly basis compute and file with the Commission and the Nigerian Stock Exchange (NSE) its net liquid capital position not later than five (5) days after end of the month; *Download Net Capital Form* 
  1. The return on net liquid capital shall be filed in the manner prescribed by the Commission from time to time; 
  1. The Commission may request for evidence of existence of assets or institute an asset verification exercise when necessary to substantiate claims. A broker-dealer is also required to avail the Commission relevant evidence of significant changes in position of assets; 
  1. The computation must reflect the true and fair position of all assets and liabilities of the broker-dealer. Material mis-statement or omission shall be regarded as misleading the Commission and shall attract appropriate sanction; 
  1. Where established financial claims against a broker have been omitted from the computation of the net liquid capital, the Commission shall adjust the net liquid capital of the concerned broker-dealer; 
  1. Where a broker-dealer is suspended from trading as a result of a short-fall in its net liquid capital, the broker-dealer shall be subject to verification for compliance prior to the Commission's approval for lifting of the suspension; 
  1. Every broker-dealer is expected to comply with this guideline. Returns for January 2020 on net liquid capital are expected on or before 5th February 2020. The returns should be filed with the Commission via brokers@sec.gov.ng while the reporting template can be downloaded from the SEC website; 
  1. Failure to file the returns as required would attract appropriate sanctions.

 

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