Regulatory Alerts2020-01-29
Guidelines on Net Capital: SEC Rules 57 and 58
The Securities and Exchange Commission has issued guidelines requiring broker-dealers to compute and file their net liquid capital positions monthly under SEC Rules 57 and 58. Each return must be submitted within five days of month-end to the Commission and Nigerian Stock Exchange, accurately reflecting all assets and liabilities while subjecting omissions or misstatements to verification exercises and sanctions. Broker-dealers suspended for capital shortfalls must undergo compliance verification before trading reinstatement, and timely filing failures will trigger appropriate regulatory penalties.
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