NIGERIAN’S apex regulatory body of the capital market, Securities & Exchange Commission (SEC) has proposed new set of rules to guide the operations of nominee companies in the country, including defining the context, operational scope and who can set one up.
The guideline sets N1 billion minimum capital for operators, just as it defines a nominee as “a company formed by a bank or other financial institution for the purpose of holding securities and other assets and administering them on behalf of the actual owners under the terms of a custodial or nominee agreement.”
It also requires that parent company/shareholders, which must be financial institutions, should have a combined minimum net worth of N30 billion, in addition to a current Fidelity Bond covering at least 25 per cent of the minimum capital.
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