Home Business Industry SEC intensifies fight against infractions with new investors’ identification guideline

SEC intensifies fight against infractions with new investors’ identification guideline

228
0

The Securities and Exchange Commission (SEC) has said that come April 1, 2020, it would begin enforcement of a new investors’ identification regime meant to enhance transparency in the capital market and help in reducing incidence of unclaimed dividend in the country.

In a circular, SEC revealed that no transactions will be effected on any existing investor’s account without updated and validated information as required under the approved know-your-customer (KYC) format for the market and that any stockbroking firm that trades on any such incomplete account shall be sanctioned.

SEC in the circular, directed stockbrokers to capture full information in respect of new clients and as well, update the information of their existing clients. The required information includes bank account details, bank verification number (BVN), telephone number and email address.

“Such information should be validated against the Nigerian Interbank Settlement Systems Limited (NIBSS) BVN validation portal. Brokers should update their Order Management System to enable the system flag off accounts with incomplete KYC information,” SEC stated.

The apex market regulator also directed that the Central Securities Clearing System (CSCS) should have an editable format of lists clients with incomplete records to stockbrokers for them to update and return such to CSCS.

The commission also mandated the CSCS to ensure the transmission of full information to the registrars following transactions while registrars must ensure that new or updated shareholders information transmitted to them are properly captured in the relevant company’s register of members.

LEAVE A REPLY

Please enter your comment!
Please enter your name here