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SEC Gives Stockbrokers Deadline to File Liquidity Position

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Brokers and dealers in the nation’s capital market have been directed to compute and file their monthly net liquid capital position not later than five days after end of the month.

In a directive posted on its platform on Wednesday, the apex regulator in the country’s capital market said for the 2020 returns, the brokers must file their net liquid capital on or before February 5, 2020. The returns are required to be sent to the agency and the Nigerian Stock Exchange (NSE).

It was stated that failure to file the returns as required would attract appropriate sanctions and they must be submitted “in the manner prescribed by the commission from time to time.”

According to SEC, the computation must reflect the true and fair position of all assets and liabilities of the broker/dealer, while material mis-statement or omission would be regarded as misleading the commission and shall attract appropriate sanction.

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“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 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.

The notice further said, “The commission may request for evidence of 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 position of assets.”

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