The Director General of SEC Nigeria recently spoke on Arise Television, shedding light on key updates in the Investment and Securities Act (ISA) 2025 | Enroll Now: Training Opportunities at The Nigerian Capital Market Institute (NCMI)! | In a major boost to capital market regulation in Nigeria, President Ahmed Bola Tinubu GCFR, has assented to the Investments and Securities Bill (ISB) 2025, which repeals the Investments and Securities Act No. 29 of 2007 | The Director General of SEC Nigeria recently spoke on Arise Television, shedding light on key updates in the Investment and Securities Act (ISA) 2025 | Enroll Now: Training Opportunities at The Nigerian Capital Market Institute (NCMI)! | In a major boost to capital market regulation in Nigeria, President Ahmed Bola Tinubu GCFR, has assented to the Investments and Securities Bill (ISB) 2025, which repeals the Investments and Securities Act No. 29 of 2007 |

Requirements for Filing of Returns by Capital Market Operators

Ensuring Market Transparency and Compliance: A Guide to Return Filing for Capital Market Operators

This comprehensive guide outlines the requirements and procedures for capital market operators (CMOs) to file returns with the Securities and Exchange Commission (SEC) of Nigeria. Timely and accurate filing of returns is crucial for maintaining market transparency, ensuring compliance with regulatory requirements, and facilitating effective oversight by the SEC.

Purpose and Importance of Return Filing:

Return filing serves several essential purposes within the capital market ecosystem:

  • Promotes Market Transparency: Regular submission of returns provides valuable insights into the activities and performance of CMOs, enhancing market transparency and enabling informed decision-making by investors.
  • Ensures Regulatory Compliance: Return filing is a mandatory requirement for CMOs, ensuring their adherence to applicable laws, regulations, and SEC directives.
  • Facilitates Effective Oversight: The SEC utilizes return filings to monitor the activities of CMOs, identify potential risks, and take necessary regulatory actions to maintain market integrity.

Types of Returns and Filing Timelines:

CMOs are required to file various types of returns with the SEC, each with specific filing timelines:

  • Quarterly Returns: CMOs must file quarterly returns within 30 days after the end of each quarter, providing an overview of their financial and non-financial performance.
  • Annual Returns: Audited annual returns must be filed within six months after the end of the accounting year, presenting a comprehensive financial statement and a review of the CMO's operations.
  • Quarterly Returns on Utilization of Issues Proceeds: Quarterly returns on the utilization of issues proceeds must be filed within 30 days after the end of each quarter, detailing the allocation and usage of funds raised through public offerings.
  • Quarterly and Annual AML/CFT Returns: Quarterly and annual AML/CFT returns must be filed within the prescribed timelines, providing information on the CMO's anti-money laundering and combating the financing of terrorism (AML/CFT) policies and procedures.

Adherence to Filing Requirements and Penalties for Non-Compliance:

CMOs are legally obligated to comply with the return filing requirements. Failure to file returns or late filing can result in significant penalties, including monetary fines and potential revocation of licenses.

Enhancing Market Integrity and Protecting Investors:

The stringent return filing requirements play a crucial role in safeguarding market integrity and protecting investors. By ensuring transparency, promoting compliance, and enabling effective oversight, the SEC safeguards the Nigerian capital market and fosters a stable and conducive environment for investment growth.

Download the Requirements Checklist pdf • 161.9 KB
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