SEC Requires Trade Group Membership for Registration of Market Operators

The Securities and Exchange Commission (SEC) has just announced a new requirement for capital market operators. In order to renew their annual registration with the Commission, operators will now need to show evidence of registration with a capital market trade group. This new rule, outlined in a statement by Hafsat Rufai, Director of Registration at SEC, is set to take effect from January 1, 2025.
All Capital Market Operators (CMOs) looking to renew their registration for 2025 must include their annual receipt from their respective trade groups as part of their application. The deadline for completing the renewal process is January 31, 2025, and failure to comply may result in penalties or exclusion from market activities.
Sam Onukwue, Chairman of the Association of Securities Dealing Houses of Nigeria (ASHON), praised the SEC for this new requirement and encouraged market operators to embrace this directive. He believes that it will strengthen trade groups, enhance market transparency, and promote professionalism.
Industry experts see this new mandate as a positive step towards fostering transparency, accountability, and professionalism in the capital market. By requiring registration with a trade group, SEC aims to ensure that operators adhere to industry standards and best practices. Ultimately, the goal is to protect investors and support the growth of the Nigerian capital market.
This move by SEC reflects a commitment to safeguarding investors and improving market integrity. The requirement for registration with a trade group is seen as a significant milestone in achieving these objectives and advancing the development of the capital market.