Regulatory Alerts2020-10-22
Circular to All Capital Market Operators
The Nigerian Securities and Exchange Commission has implemented new registration requirements for capital market operators under the Investments and Securities Act 2007. Managing Directors or Chief Executive Officers must now submit detailed company contribution briefs when presenting sponsored individuals for interview, while transferring candidates face mandatory fresh interviews instead of automatic exemptions. Effective January 2021, pre-registration examinations administered by the Nigerian Capital Market Institute will incorporate essay questions to rigorously assess candidate knowledge and skill.
In line with Section 38(2) of the Investments and Securities Act 2007 which empowers the Securities and Exchange Commission (“the Commission”) to prescribe conditions for registration of capital market operators, including the level of knowledge and skill required to operate in the Nigerian capital market, the Management of the Commission has approved the following: Managing Directors/Chief Executive Officers of capital market operators who present sponsored individuals before the Registration Committee for interview would be required to provide a detailed brief about their companies, highlighting the contribution of the companies to the development of the Nigerian capital market. All registered sponsored individuals seeking to transfer their registration to a proposed capital market operator (new firm) would henceforth be required to undertake a fresh interview as against the current practice where they are granted an exemption. Effective from January 2021, the pre-registration examinations for intending capital market operators conducted by the Nigerian Capital Market Institute would include essay questions. Please be guided accordingly. Signed Management