The Securities and Exchange Commission (SEC) has announced a major shift in the renewal process for capital market operators, introducing a mandatory registration with a trade group as part of the requirements.
This new directive, outlined in a statement signed by Hafsat Rufai, SEC’s Director of Registration, Exchanges, and Market Infrastructure Department, takes effect from January 1, 2025.
According to the statement, all Capital Market Operators (CMOs) seeking to renew their annual registration must now include proof of payment for their 2025 annual receipt from their respective trade groups as part of their application.
SEC emphasized that this move is in line with its rules and regulations and warned that operators who fail to meet the January 31, 2025, renewal deadline will face penalties and potential exclusion from participating in capital market activities.
“This directive underscores the Commission’s commitment to enforcing regulatory compliance and ensuring a transparent and accountable market,” the statement read. SEC believes that this step will enhance professionalism among CMOs and bolster confidence in the Nigerian capital market.
Reacting to the development, Sam Onukwue, Chairman of the Association of Securities Dealing Houses of Nigeria (ASHON), praised the SEC’s decision and urged market participants to comply.
Onukwue described the move as a positive development that will empower trade groups to play stronger roles in advocacy and promoting transparency in the market.
Market analysts have also lauded the new requirement, highlighting its potential to reinforce investor confidence and improve industry standards. A financial expert noted that SEC’s insistence on trade group registration aims to ensure that operators adhere to best practices while fostering accountability and professionalism.
This directive comes as part of SEC’s broader efforts to develop and safeguard the Nigerian capital market. By holding operators to higher standards, the Commission aims to create a more robust environment that attracts investment and encourages sustainable growth. With the new rules set to kick in soon, stakeholders are expected to adapt quickly and align with the new regulatory expectations.
