Regulatory Alerts2021-05-25
Amendments to Rule 45 (1) & (2): Registrable Functions
The Securities & Exchange Commission has updated Rule 45 to expand the list of recognized capital market operators to include digital sub-brokers, robo-advisers, crowdfunding intermediaries, and central counterparty clearing members. These same functions have been added to the list of roles that require corporate body status for application purposes. Existing entities intending to perform registrar functions are still required to incorporate a separate body for that specific purpose.
Securities & Exchange Commission
AMENDMENTS TO RULE 45 (1) & (2): REGISTRABLE FUNCTIONS
Legend: Additions are underlined
Full Text of Existing Rule:
(1) The following are capital market operators: a. issuing houses/merchant bankers; b. underwriters; c. broker/dealers; d. sub-brokers; e. receiving bankers; f. registrars; g. trustees; h. investment advisers (corporate and individuals); i. fund/portfolio managers; j. rating agencies; k. market makers l. custodian m. nominee n. any other function the Commission may determine from time to time.
(2) Only corporate bodies are qualified to file applications for the following functions: a. Broker/Dealer; b. Underwriter; c. Issuing House; d. Registrar e. Trustee; f. Fund/Portfolio Manager; g. Rating Agency h. Market Makers i. Receiving Bankers
Provided that where an existing entity intends to perform the functions of a registrar, it shall incorporate a separate body for that purpose.
Amendment to Rule 45 (1):
(1) The following are Capital Market Operators: a. Issuing Houses/Merchant Bankers; b. Underwriters; c. Broker/Dealers; d. Sub-brokers (<u>Corporate, Individual, Digital</u>); e. Receiving Bankers; f. Registrars; g. Trustees; h. Investment Advisers (Corporate, Individual, <u>Robo Adviser</u>); i. Fund/Portfolio Managers; j. Rating agencies; k. Market Makers l. Custodians m. Nominees n. <u>Crowdfunding Intermediaries</u> o. <u>Central Counterparty Clearing Members</u> p. Any other function the Commission may determine from time to time.
Amendment to Rule 45 (2):
(2) Only corporate bodies are qualified to file applications for the following functions: a. Broker/Dealer; b. Underwriter; c. Issuing House; d. Registrar e. Trustee; f. Fund/Portfolio Manager; g. Rating Agency h. Market Maker i. Receiving Banker j. Nominee k. <u>Crowdfunding Intermediary</u> l. <u>Central Counterparty Clearing Member</u>
Provided that where an existing entity intends to perform the functions of a registrar, it shall incorporate a separate body for that purpose.
MADE AT ABUJA THIS 24th DAY OF MAY 2021
ENO OTUNBA-PAYNE, Ag. Secretary to the Commission LAMIDO A. YUGUDA, Director-General