COMPLIANCE WITH MINIMUM CAPITAL REQUIREMENT BY CAPITAL MARKET OPERATORS- PROCEDURE FOR MOVING STOCK ACCOUNT
The Market-wide Implementation Committee on new minimum capital requirement for Capital Market Operators (CMOs) further advises the investing public to verify the compliance status of their preferred CMO by checking the list posted on the Securities and Exchange Commission (SEC) website.
The following guidelines should be adhered to by investors, target firms and the Central Securities Clearing System (CSCS) where an investor wishes to move his stock account from an under-capitalised Broker/Dealer to a Broker/Dealer or Broker that has complied with the minimum capital requirement (capitalised firm):
Where the Broker/Dealer has not met the new minimum capital requirement, the investor should approach a capitalised Broker/Dealer or Broker for engagement
The investor should undergo a Know Your Customer (KYC) process with the new firm
The Broker/Dealer or Broker should open a CSCS account for the investor using the investor’s existing Clearing House Number (CHN) from his former Brokerage Firm
The investor should give a mandate to the target firm to transfer his/her account from the under-capitalised firm to the Target firm (capitalised firm).
The investor should submit evidence of purchase of the shares such as contract notes, receipts of purchase, dividend stubs or confirmation of holdings from the Registrar’s office, signed by the Managing Director of the Registrar firm to the target firm
The Target firm (capitalised firm) should initiate inter-member transfer request.
The Managing Director of the Target firm (capitalised firm) shall go to the CSCS to sign off the indemnity form
The CSCS shall process the request and notify the Broker/Dealer or Broker through the CSCS website.
For further inquiries/clarification please send an email to firstname.lastname@example.org or call the following numbers: +234 94 621168; +234 94 621142; +234 94 621125 and +234 94 621133