Stockbrokers to seek downward review of SEC’s new capital requirements

The Association of Securities Dealing Houses of Nigeria (ASHON) says it is seeking downward review of the Securities and Exchange Commission’s (SEC) new minimum capital requirements for capital market operators (CMOs).

Earlier, the SEC announced an increase in minimum capital requirements for all categories of CMOs.

According to the SEC, the revised minimum capital framework seeks to align capital requirements with the scope, complexity, and risk exposure of regulated activities.

The commission proposed raising the minimum capital base to N2 billion for broker/dealer firms, N1 billion for dealers, and N600 million for brokers, among other categories.

In a statement on Friday, ASHON, which represents all stockbroking houses in Nigeria, said it is engaging members to ensure compliance with the new requirements before the deadline.

“As the umbrella trade association representing all Stockbroking Houses in Nigeria, the Association of Securities Dealing Houses of Nigeria (ASHON) we want to say that we cannot run away from this capitalization review,” the association said.

“In the meantime, we have commenced consultations and engagements aimed at ensuring that our members are well-positioned to comply with the new requirements before the deadline while also mobilizing for a downward review of the new capitalization.”

ASHON noted that it is not challenging the regulator’s directive but is seeking to facilitate a smooth, orderly and considerate recapitalisation process for its members.

The association added that it will continue to engage with relevant stakeholders and keep members informed of further developments, urging cooperation and patience during the process.(The Cable)