Dealing Member Banks Registration Requirements

APPLICATION GUIDELINES

• All the documents listed below are mandatory requirements, which must be provided.
• Every SEC Form must be duly completed and adequately populated with all the required information ensuring that no field is left blank, as this will invalidate the forms.
• An application is not considered submitted until the forms are adequately populated and all the required documents provided
• Sponsored individuals whose registration have lapsed are required to commence the registration process afresh. (refer to the SEC Rules 19 and 35 as amended)
• Proposed sponsored individuals are required to visit any of the SEC offices with three (3) recent passport photographs to commence the Police clearance process (this for potential sponsored individuals seeking registration for the first time with the Commission and those whose registration as sponsored individuals have lapsed);
• All potential sponsored individuals (Except individuals for transfer) will be required to attend a pre-registration training and examination. Successful individuals, (provided the required structure of sponsored individuals is maintained) will be presented before the Registration Interview Committee for consideration.
• ALL original copies of the documents/certificates are to be presented for sighting by an authorized officer of the SEC.
• Annual renewal of registration: Upon the approval to operate as a Capital Market Operators (CMO), the company shall renew its registration annually not later than January 31st of every year
• The Commission may require such other documents, as it considers necessary for registration.
• Every applicant Company/Firm will be physically inspected in the course of processing an application for registration,
• A fair knowledge of the Rules and Regulations of the Commission and Investments & Securities Act No 29 of 2007 and the Capital Market is an essential prerequisite for registration.

REQUIREMENTS FOR REGISTRATION

Payment

1. Evidence of Payment of Filing/Application Fee – N100,000.00 (One Hundred Thousand Naira) only;
2. Evidence of Payment of Processing Fee – N300,000.00 (Three Hundred Thousand Naira) only;
3. Evidence of Payment of Registration Fee – N3,000,000.00 (Three Million Naira) only;
4. Evidence of payment of Director’s fee- N100,000.00 (One Hundred Thousand Naira)
5. Evidence of Payment of Sponsored Individual Fees where applicable as follows;

• N100,000.00 (One Hundred Thousand Naira) only for each potential sponsored individual
• N50,000.00 (fifty thousand naira) for transferring sponsored individual
• N100,000.00 (One Hundred Thousand Naira) only for change of registration
• N150,000.00 (One Hundred Thousand and fifty thousand Naira) for transfer and change of status

Forms

1. Duly executed Form SEC 3 for the company
2. Duly executed Form SEC 2 and 2D for Sponsored Individuals and Directors of the Company. (Note that every potential Capital Market Operator requesting for registration of this function is required to have at least three sponsored individuals, one of whom should be a Compliance Officer who shall be responsible for monitoring compliance with the ISA 2007, Rules and Regulations, notifications, guidelines, instructions etc. issued by the Commission and/or the Federal Government).
3. Duly Executed Form SEC 2B for Transferring Individuals. (please refer to the requirements for transfer of registration on the Commission’s website for compliance)

Directors and Proposed Sponsored Individuals

1. Minimum of three (3) sponsored Individuals, including the Managing Director and Compliance Officer. (Companies registered/seeking registration to carry out multiple functions shall sponsor the total number of individuals prescribed for each function).
2. The Form SEC 2 should indicate amongst others, the applicant’s BVN, bank details, Official Email Addresses as well as full Postal addresses, Contact Numbers and Email addresses of previous employers, bankers and nominated referees;
3. Copies of employment letters and schedule of duties (duly accepted by the employee and signed by both parties i.e. the employer and the employee);
4. For individuals on transfer, provide evidence of resignation from the previously registered company, evidence of the individual’s notification to the Commission of his/her resignation and the company’s acceptance of the resignation;
5. Curriculum vitae of all Directors and proposed sponsored individuals, which shall include details of activities, arranged in a chronological order from Secondary School(s) with dates and duration clearly indicated. (Reasons for leaving all previous employment are required to be stated. The duration and gaps in employment and educational history must be indicated and explained);
6. Copies of credentials including secondary school(s) and NYSC discharge/exemption certificates (originals required to be sighted by an authorized SEC staff);
7. Evidence of change of name where applicable (to be supported with relevant documents including Court Affidavit and Newspaper publication)
8. A copy of residence/ Working Permit for Non-Nigerian/residents, the original copy will be required for sighting by the SEC official
9. A copy of valid means Identification (International Passport, National Identity Card, Driver’s License, permanent voter’s card, Tax Clearance Certificate or utility payment documents)

All Sponsored Individuals are required to have relevant post-graduation experience as stipulated in ‘Rule 20’ of the Commission`s Rules and Regulations

Minimum Paid-Up Capital and Fidelity Insurance Bond

1. Latest audited Account
2. Valid Fidelity Bond covering at least 20% of the minimum capital requirement with an end date of December 31;

Applicant Company

1. Profile of the Company should include among others brief a history of the company, the organizational and shareholding structure, details of past and current activities and information on the principal officers;
2. Name (s) and address (es) of the company’s subsidiaries, associated and/or related companies, type of business and percentage of holdings;
3. Evidence of the CBN’s no-objection to the bank to operate as a Dealing member
4. Operational Manual of the company;
5. Business Plan of the company;
6. The company’s Website Address, Email Address(es), Phone Number(s);

Corporate Documents

A copy of each of the following, duly certified by the CAC;

1. Certificate of Incorporation;
2. Memorandum and Articles of Association – this should include the power to perform the specified function required
3. CAC document(s) showing Statement of Share Capital, Return of Allotment, and Particulars of Directors

(Note: the original copy of the certificate is to be presented for sighting by an authorized officer of the SEC);

1. Latest audited accounts or audited statement of affairs signed by two company directors and a confirmation letter from an external auditor, which is not more than thirty (30) days old at the time of filing with the Commission.
2. A sworn undertaking, confirming to the Commission that all the information provided by the Company including all Bank information is true and correct. (to be signed by a Director or company secretary and notarized);
3. Sworn undertaking to keep proper records and render returns as may be specified by the Commission from time to time signed by a director or the company secretary (to be notarized);
4. Sworn undertaking to abide by SEC Rules and Regulations and Investments and Securities Act No.29 of 2007 by a director or the company secretary (to be notarized);