How to Register with the Securities and Exchange Commission (SEC)

Nelson Vincent - 0

To operate in the Nigerian capital market as a Capital Market Operative (CMO) or a Capital Market Consultant CMC (Consultant), one must be registered by the Securities and Exchange Commission (SEC). As provided for by Rule 178 of the SEC Rules 2013, this registration can be for either individuals carrying on business in their names, firms or as corporate bodies as permitted by the Securities and Exchanges Commission.

Registration is important because S38(1) of the Investment and Securities Act (ISA) provides that no person shall operate in the Nigerian capital market as an expert or professional or in any other capacity as may be determined by SEC; or carry-on investment and securities business unless he is registered in accordance with the ISA and the rules and regulations made thereunder.

The professionals allowed for registration are:

  1. Legal Practitioners
  2. Accountants
  3. Auditors
  4. Engineers
  5. Estate Valuers
  6. Property Manager, and
  7. Others as determined by SEC.

For individual Partners, they must possess 5 years post-call experience to qualify to be registered while for sponsored individuals it is 2 years post-call that is needed r178 SEC Rules 2013.

Secretaries cannot register with SEC

Qualifications for Registration of Individuals with the SEC

This is for Individuals

  1. 5 years post call experience, and 4 years’ experience in corporate practice (excluding the NYSC year).
  2. Sufficient knowledge of capital market law and practice.
  3. Traceable law office address
  4. Payment of N5,000 prescribed fees
  5. Pass the requisite test/exams

Registration by SEC is different from Accreditation by CAC. See Prof. AB Kasunmu V SEC; RULE 20 AND RULE 178 OF SEC RULES.

Requirement for Registration of Firms with SEC

This is for firms/those carrying on business in their true names

  1. Application form SEC 2
  2. Certified certificate of Business Name
  3. CV of Applicants and Profile of the firm
  4. Copy of partnership deed (where applicable)
  5. Full postal and electronic address of immediate past employer if sponsored individuals
  6. Sworn statement that the requirement of the Act has been complied with
  7. Evidence of payment of annual practicing fee
  8. Professional indemnity insurance
  9. Means of identification
  10. Audited account of the firm
  11. Evidence of minimum net worth

REQUIREMENT FOR REGISTRATION FOR CORPORATE BODIES 

SEC 3 Applicable to corporate bodies

  1. Application form SEC 3
  2. Two duly completed SEC 2 one filled by principal officer and the other by another officer
  3. CV of sponsored individual including detailed activities from secondary school to date
  4. Copy of certificate of incorporation certified by secretary or original to be sighted
  5. Evidence of minimum share capital of N5m
  6. Profile of company showing past and present activities
  7. Two copies of certified memo and articles

8. Signed copy of audited account or audited statement of account

9. Full postal address of sponsored individual

10. Sworn affidavit to keep proper record and render return as specified by SEC

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