Overview

The document outlines major amendments to the Rules and Regulations of the Securities and Exchange Commission (SEC) of Nigeria, specifically focusing on Rule 67 (Sub-broker), Rule 70 (Records of Transactions with Clients), and the creation of a new Rule 76. The primary amendment is to Rule 67, which introduces a new category of sub-broker: 'Sub-Broker Serving Multiple Brokers Through a Digital Platform.' The existing requirements for corporate and individual sub-brokers are retained, with additional compliance requirements for the new digital platform sub-broker category. These include payment of N50,000 filing/application fee, N200,000 processing fee, and registration fee of N250,000. The sub-broker must also enter into a sponsorship agreement, ensure minimum paid-up capital of N10 million, and provide operational documents such as an operational manual, organizational chart, and evidence of compliance with data protection laws. The document defines 'sub-broker' as a person or entity not being a dealing member of an Exchange who acts on behalf of a sponsoring broker/dealer. The new digital platform sub-broker utilizes a digital platform to serve clients and interact with the sponsoring broker or brokers.

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