The Securities and Exchange Commission (SEC) has called for meeting with all capital market operators, for an update on the newly introduced risk based supervision (RBS) template for the Nigerian capital market.

SEC said in a circular released on Tuesday, “Notice of Town Hall Meeting with Capital Market Operators (CMOs) on the SEC Risk-Based Supervision (RBS) Framework and Updated Reporting Template” that the series of meeting scheduled to commence on Monday next week was to harmonize developments in on implementation of the new rule.

According to the apex capital market regulator, March 13, 2017, the commission will meet with Chief Executive officers, chief compliance officers and chief finance officers of broker dealer firms. The venue is SEC’s Lagos office in Victoria Island. From 9am -11 am and 12- 3 pm respectively.

This will be followed by another meeting the following day March 14, with portfolio, fund managers, Issuing houses, Trustees, Corporate Investment Advisers, Rating Agencies

The third in the series of meetings scheduled for the Lagos office of the SEC, involves the regulators on March 15, 2017.

Expected at the meetings are, chief executive officers, chief finance officers and chief compliance officers. All the seminars have two sessions. First segment which spans from 9-11 am, will focus on risk based supervision (RBS) framework, while the second segment would RBS template.

SEC said that the (Town hall) meeting was called in in view of the migration to Risk-Based Supervision (RBS) framework, and the need to harmonize the Quarterly Reporting Templates of the Securities and Exchange Commission (SEC) with that of The Nigerian Stock Exchange (NSE).

The Securities and Exchange Commission introduced the Risk Based Supervision (RBS) model with the aim of establishing a more vigorous regulatory framework for the capital market.

The SEC in January 2017, commenced implementation of the RBS framework, to align its oversight functions with global standards and that of the International Organisation of Securities Commission (IOSCO).

The RBS is to ensure that regulatory oversight is more effective, investor protection is advanced and systemic risk is lessened.

Before introduction of RBS, SEC had operated the class minimum capital requirement for operators. Under the class minimum capital requirement, the commission set minimum capital requirements for all capital market functions without giving much consideration to the assets size and inherent risks.

As part of the adoption process, a RBS framework has been developed to serve as a guide for staff of its inspectorate division and would apply to the prudential supervision of all CMOs. This framework is a dynamic working document that will be reviewed on a regular basis and as the need arises to ensure that it remains relevant in achieving the supervisory objectives of the SEC.


Please enter your comment!
Please enter your name here