SEC reaffirms KYC update, hints market operators

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SEC reaffirms KYC update, hints market operators

The Securities and Exchange Commission (SEC) has re-affirmed the sanctity of KnowYour Client (KYC) by the Capital Market Operators (CMOs) as part of the measures to uphold market integrity and attract genuine investors.

The Commission’s Director General, Mr. Lamido Yuguda, stated this at the First Post Capital Market Committee Meeting press briefing held in Abuja Weekend.

Yuguda noted that the level of compliance had been low despite several engagements, the Commission realized that as of April 8, 2021, there were still 4,012,311 (Four million, twelve thousand, three hundred and eleven) accounts with incomplete KYC information.

The exercise, SEC explained was critical to deepening the participation of retail investors, hence it direct all CMOs to accord it the highest level of priority.

Yuguda disclosed that a major highlight of the year 2021 is the reintroduction of periodic renewal of registration by Capital Market Operators.

He said the rationale for this is to ensure that operators in the market are fit and proper at all times and to strengthen the supervision and monitoring activities of the Commission.

The renewal process is electronic and the deadline for the 2021 renewal is 30th April 2021.

The SEC’s  boss stated that despite the turbulence experienced with the outbreak of the pandemic, the Nigerian capital market stood resilient adding that the capital market community-contributed its quota to the fight against COVID-19.

“I am delighted at the efforts that we made and pledge that we shall not relent in our efforts. To this end, our next phase of support in the fight against COVID-19 will be the establishment of the Strategic Health Impact Fund for Transformation (SHIFT). This is planned to be an N100 billion fund for investment in healthcare assets in Nigeria”., Yuguda said.

He also stated that the Commission was at the mid-point of implementing its Capital Market Master Plan (CMMP) and has commenced a review to update the assumptions, and align the plan with current realities.

Similarly, he said the Commission has released new rules on warehousing, collateral management, crowdfunding, fund management products and nominee companies to ensure proper regulation and development of our market.


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