SEC Introduces New Requirement For Capital Market Operators’ Registration

The Securities and Exchange Commission (SEC) has introduced a new requirement for capital market operators (CMOs) seeking annual registration renewals.

Operators must now provide evidence of registration with a recognised capital market trade group to complete their renewal process.

The directive, outlined in a recent statement signed by Hafsat Rufai, Director of the Registration, Exchanges, and Market Infrastructure Department at SEC, takes effect from January 1, 2025. The commission emphasised that CMOs must include proof of their 2025 annual receipt from their respective trade groups as part of their renewal applications.

“In line with the commission’s Rules and Regulations, all CMOs are to complete the renewal of their registration for 2025 on or before January 31, 2025. Note that CMOs without valid registration will be penalised and may be excluded from carrying out capital market activities,” the statement said.

Mr. Sam Onukwue, Chairman of the Association of Securities Dealing Houses of Nigeria (ASHON), commended the SEC for this initiative. According to him, the directive would bolster trade groups in their advocacy roles and enhance transparency and professionalism within the capital market.

“It is a welcome development, and we duly commend the SEC for this directive. It will strengthen trade groups in their advocacy role as well as in promoting market transparency and professionalism,” Mr. Onukwue stated.

Market observers view the new requirement as a strategic move to improve transparency, accountability, and adherence to industry standards. One market analyst highlighted that trade group membership would ensure operators comply with best practices, thereby fostering investor confidence and furthering the development of Nigeria’s capital market.

“This new requirement is an important step toward achieving these goals, and it underscores SEC’s commitment to protecting investors and enhancing the capital market’s integrity,” the analyst noted.