SEC Directs Stockbrokers to File Monthly Net Liquid Capital
UMORU ABDULKADIR
The Securities and Exchange Commission (SEC) has directed brokers and dealers in the capital market to always compute and file their monthly net liquid capital not later than five days into the following month.
SEC gave this directive in its Guidelines on Net Liquid Capital published on its website on Wednesday.
In the guidelines, culled from the Commission’s Rule 57 and 58, the capital market stated that brokers must file their January 2020 net liquid capital on or before February 5, 2020 to the Commission and the Nigerian Stock Exchange (NSE).
The Commission warned that failure to file and submit the returns in the manner prescribed and directed by the SEC would attract appropriate sanctions.
The directives also stated the computation must reflect the true and fair position of all assets and liabilities of the broker/dealer, while material misstatement or omission would be regarded as misleading the commission and shall attract appropriate sanction.
As part of measures to ensure that brokers/dealers file in the right assets, the notice said, “The commission may request for evidence of the existence of assets or institute an asset verification exercise when necessary to substantiate claims. A broker-dealer is also required to avail the commission relevant evidence of significant changes in the position of assets
According to SEC “Where established financial claims against a broker have been omitted from the computation of the net liquid capital, the commission shall adjust the net liquid capital of the concerned broker-dealer;
“Where a broker-dealer is suspended from trading as a result of a short-fall in its net liquid capital, the broker-dealer shall be subject to verification for compliance prior to the commission’s approval for the lifting of the suspension.
“Every broker-dealer is expected to comply with this guideline. Returns for January 2020 on net liquid capital are expected on or before 5th February 2020. The returns should be filed with the commission via [email protected], while the reporting template can be downloaded from the SEC website,” it said.
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