Frequently Asked Questions
On Sponsored Individuals
A sponsored individual is a person who is employed by a capital market operator (CMO) and who has been sponsored by the CMO to perform certain functions on its behalf. The Securities and Exchange Commission (SEC) of Nigeria requires that all sponsored individuals be registered with the SEC.
Roles of Sponsored Individuals
Sponsored individuals play an important role in the Nigerian capital market. They are responsible for a wide range of tasks, including:
Dealing in securities on behalf of clients
Providing investment advice to clients
Managing investment portfolios on behalf of clients
Underwriting securities issues
Custodian of securities
Sponsored Individuals and SEC
Sponsored individuals have a number of points of interaction with the SEC. For example, they are required to:
Register with the SEC
Pass an examination administered by SEC
Comply with the SEC's rules and regulations
Provide the SEC with regular reports on their activities
SEC Powers Over Sponsored Individuals
SEC also has a number of powers in relation to sponsored individuals. For example, the SEC can:
Suspend or revoke the registration of a sponsored individual
Impose fines on sponsored individuals
Disqualify sponsored individuals from holding certain positions in the capital market
The SEC's oversight of sponsored individuals is important to protect investors and to ensure the integrity of the Nigerian capital market.
Examples of Interactions With SEC
Here are some specific examples of how sponsored individuals interact with the SEC:
When a CMO first hires a sponsored individual, the CMO must submit an application to the SEC to have the individual registered. The application must include information about the individual's education, experience, and qualifications.
Sponsored individuals must pass an examination administered by the SEC before they can begin performing their duties. The examination covers a range of topics related to the capital market, including securities law, ethics, and risk management.
Sponsored individuals must comply with all of the SEC's rules and regulations. This includes rules on insider trading, market manipulation, and best execution.
Sponsored individuals must provide the SEC with regular reports on their activities. These reports include information about the securities that they have dealt in and the advice that they have provided to clients.
SEC can conduct inspections of CMOs to ensure that sponsored individuals are complying with the SEC's rules and regulations.
SEC is committed to supporting sponsored individuals in their professional development and to ensuring that they are able to perform their duties in a responsible and ethical manner.