NAN-HE-15
SEC
By Lucy Nwachukwu
Abuja, Sept.22, 2016 (NAN) The Securities and Exchange Commission(SEC) plans to enact a new rule on Asset Managers’ Code of Professional Conduct and review the requirement for sub-brokers.
This is contained in a circular by the management of SEC that was made available to newsmen on Thursday in Abuja.
On the Asset Manager Code, it stated that the rule made provisions for conduct expected of Asset Managers.
It named some of the rules to include the General Principle of Conduct, obligations to clients, duties relating to investment process and actions and conduct while trading for clients.
It listed others as development of risk management compliance and support, presentation of performance information and valuation of portfolios as well as timely communication and disclosure of information to clients.
On the existing rule for trading in unlisted securities, including that of debt securities, it said slight amendment had been made on it. Some of the amendments were listed as follows:
“The words `unlisted public’ is replaced with `public unlisted’ and the proposed new rule (b)now includes securities issued by the Federal Government of Nigeria and Sub-nationals.
“ There is a new rule (c) that includes regulation of trading in foreign currency securities of Nigerian entities listed in other jurisdiction.
“A slight amendment and renumbering of existing rule (b) as new rule (d) to compel trading of securities of public companies on SEC-registered platforms only.
“Slight amendment to existing rule (c ) and renumbering of same as new rule (e),’’ it stated as part of the new rules.
On the review of capital requirement for sub-brokers, it listed the highlights, including the amendment of rule 67(1)(i) on increasing the minimum paid-up capital requirement for corporate sub-brokers to N10 million.
There is also a review of schedule 1, part B(5), to reflect N10 million as minimum paid-up capital requirement for corporate sub-brokers.
Others are amendment of rule 67 (2) (a) (ii), increasing the minimum net worth requirement for individual sub-brokers to N1million.
It said the amendment of schedule 1 part B (6) to reflect N1 million as minimum net worth requirement for individual sub-brokers was also considered.
According to the circular, details of the proposed new rule and amendments are available on the Commission’s website www.sec.gov.ng (NAN)
LCN/IA
Edited by Idris Abdulrahman