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SEC Vows to Fine Registrars N1m for Illegal Charges

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  • SEC Vows to Fine Registrars N1m for Illegal Charges

The Securities and Exchange Commission has vowed to slam a fine of N1m on registrars illegal charges imposed on investors.

SEC, in its amended draft on the operating framework for the transmission of shares, said it had disallowed registrars from charging fees on the dematerialisation of share certificates and mandating of accounts for an electronic dividend.

It said charges were allowed only on change of address, name or mandate, and should attract not more than N100 per request while updating of signature capture and scanning should not be more than N200 per signature.

The draft said the fees chargeable for transmission of shares by registrars had been limited to one per cent of the total value and an additional five per cent Value Added Tax for shares of N5m and below, while shares above N5m would attract 0.5 per cent of the value and five per cent VAT, with a maximum chargeable amount of N200,000, excluding VAT.

It stated that fees chargeable for confirmation of probate or letter of administration should not exceed N12,000.

SEC said in a statement that any registrar that violated the provisions of the rules would be liable to a penalty of not less than N1m and an additional sum of N20,000 for every day the violation persisted.

It added that it had further reduced the time, processes and costs of the transmission of shares from a deceased to the beneficiary, in a bid to reduce the quantum of unclaimed dividends in the capital market and encourage beneficiaries of deceased investors to step up efforts to claim such dividends.

The statement read in part, “This effort will ensure a seamless transmission and claim of a deceased’s shares by heirs and administrators. The timeline for the transmission of the deceased’s shares has been reduced from three weeks to one week.

“Going by that, registrars shall ensure that shares of a deceased are transmitted within a week of receiving the request from the administrators or executors. The registrar is also required to transmit the letter of administration to the probate registry within 24 hours of receipt of same for verification.

“The administrator/executor is, however, required to provide a letter of introduction, introducing himself/herself as the legal representative of the estate. The letter should also indicate the names, addresses, signatures and Bank Verification Numbers of the individual administrators/executors.”

According to SEC, alsp required were original death certificates from the National Population Commission for sighting, original probate letter or letter of administration for sighting or the certified true copy from a notary public, copies of newspaper adverts placed by the court or gazette, evidence of ownership of the investment such as Central Securities Clearing System statement(s) of the deceased, original share certificates, dividend stub or dividend warrants or bank statement(s) showing receipt of dividend(s) into the account(s) of the deceased.

It said, “Where the administrator/executor cannot provide these requirements, the registrar may require confirmation through insurance, indemnity or interview.

“The new rules also seek to standardise the turnaround time for processing all requests for replacement and update from the date of submission of all relevant documentation. The turnaround time for dematerialisation is three working days; an update of signature capture and scanning shall take place in 24 hours while a change of address, name and mandate shall be done within two working days.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market.

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Finance

Remove Face Mask When Using ATM, Banks Tell Customers

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Face Mask May Cause ATM Transaction Failure, Banks Tell Customers

Deposit Money Banks have said due to their face recognition technology, customers wearing face masks may experience service failure while using the Automated Teller Machines (ATMs).

In an email issued to customers by Fidelity Bank, the bank said why the use of face masks is important to curb the spread of COVID-19 pandemic, customers should remove when performing ATM transactions.

The bank said “Wearing of face masks is a safety and precautionary measure we must all adhere to in this period of the COVID-19 pandemic.

“However, we advise that you remove your face mask while making withdrawals or carrying out ATM transactions to allow our ATM properly recognise you.

“Fidelity Bank ATM machines have face detection features installed to curb incidences of fraudulent ATM withdrawals.

“Consequently, you may not be able to carry out any transaction if our ATMs are not able to properly recognise you. We apologise for the inconvenience that this may cause you.”

Meanwhile, Guaranty Trust Bank plc continues to ease accessibility for all customers and advised customers to protect themselves.

GTBank said, “When visiting any of our branches, kindly protect yourself by wearing a face mask at all times. It is also very important that you keep a safe distance when in a queue inside or outside the branch.

“Before visiting any of our branches, please remember that you can withdraw up to N150,000 at all our ATMs and that you can do most of your banking from the safety of your home.”

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Access Bank in Talks to Acquire Cavmont Bank

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Access Bank to Acquire Cavmont Bank in Zambia

Access Bank Plc on Wednesday announced that its wholly-owned subsidiary in Zambia, Access Bank Zambia Limited (Access Bank Zambia) is in talks to acquire Cavmont Bank Limited, a subsidiary of Cavmont Capital.

According to the statement signed by Mr. Sunday Ekwochi, Company Secretary, Access Bank and released on the Nigerian Stock Exchange website on Wednesday, the ongoing discussions is to acquire 100 percent of Cavmont Capital’s interest in Cavmont Bank.

However, the lender said “there can be no certainty that a transaction will be agreed, nor as to the terms of any such agreement.

“The completion of a transaction would be subject to formal regulatory approvals. Access Bank will be updating the market as appropriate and in accordance with its disclosure obligations.”

The lender, therefore, advised shareholders to exercise caution when dealing in Access Bank’s securities.

Investors King Ltd note: This announcement further threw more lights on the recent purchases of Access Bank’s shares by Herbert Wigwe, the Chief Executive Officer and Managing Director, Access Bank.

The CEO/MD purchased 7.532 million of Access Bank‘s shares in the last one month.

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Mohammed Umar is the New Acting Chairman of EFCC

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Buhari Appoints Mohammed Umar as EFCC Acting Chairman

President Muhammadu Buhari has appointed, Mohammed Umar, the director of operations at the Economic and Financial Crimes Commission (EFCC), as the new Acting Chairman of the agency, according to the NAN.

A top official of the commission confirmed to NAN that Umar has taken charge of the agency following the suspension of Ibrahim Magu, the former acting Chairman.

Ibrahim Magu was suspended by the President on Tuesday following series of allegations bordering on frauds, financial misappropriations and abuse of power.

 

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