1. Isyaku Bala Tilde HOD, Monitoring Department Securities & Exchange Commission

2. Introduction 2 The implementation of the first phase of new minimum capital requirement was concluded in line with the set deadline of September 30, 2015. There were no major hitches with the implementation.

3. Before the Deadline Periodical meeting of the Implementation Committee to review progress and compliance Engagement of stockbroking firms in a meeting organized by ASHON to sensitize them of various options toward compliance A Town Hall meeting with dealing members organized by The Nigerian Stock Exchange to discuss issues relating to the operation of sub-broking function. The following presentation were made at the meeting; ‐ Procedure for reclassification to Sub-Broker by SEC ‐ Guidelines for Dealing with Sub-Brokers by The NSE ‐ Settlement process for the Sub-broker model by CSCS ‐ Presentation on the Sub-Broker Model by Meristem Stockbrokers Ltd and GTL Securities Limited. Meetings with Registrars, Fund/Portfolio Managers & Trustees who were not likely to meet the capital requirement by the deadline. Circulars were issued advising companies and investors to confirm the compliance status of their Capital Market Operators (CMOs) on the SEC website. The list of CMOs compliance status was updated on weekly basis few weeks to the deadline. 3 Some of the major actions taken to ensure hitch free exercise before the deadline include;

4. After the deadline 4 The provisional list of CMOs that complied with the minimum capital requirement was released on October 1, 2015. The overall level of compliance of the affected CMOs was 72% as detailed below; FunctionRegistered CMOs CompliedYet to Comply % Level of Compliance Broker/Dealer/Sub- brokers 2241655974% Issuing Houses 2518772% Rating Agencies 53260% Fund/Portfolio Managers 69333648% Registrars 2118385% Trustees 1510567% CMOs with Multiple Functions 1471143378% Total50636114372% Level of Compliance (by Function)

5. After the deadline – Cont’d 5 CategoryNumberRemark Broker/Dealers, Corporate Sub-brokers, Fund/Portfolio Managers, Issuing Houses, Rating Agencies, Registrars, and Trustees 361 Functions directly affected by recapitalization exercise Corporate Investment Advisers/Inter-Dealer Brokers/Commodity Pool Broker 55 Receiving Bankers/Custodians21 Sub- Total437 Self Regulatory Organization6 Capital Market Consultants526 Total969 Summary of Provisional List of CMOs

6. After the deadline – Cont’d 6 Reduction in Function and Reclassification Approved Broker/Dealer to Broker31 Broker/Dealer to Dealer1 CMOs with Multiple Functions that dropped one of their functions6 Sub-total (Reduction in Function)38 CMOs that reclassified to Sub-brokers9 Total Applications (approved)47 Mergers No. CMOs Involved Concluded Mergers24 Mergers pending approval & Court Sanctioning49 Mergers suspended25 Total818

7. After the deadline – Cont’d Suspension of registration of CMOs with inadequate capital The review of claims and appeals from CMOs with inadequate capital is in progress. However, consideration for compliance is subject to verification of claims by Audit firms. Circular was posted on SEC website to guide investors on how to transfer their accounts from under-capitalized stockbroking firms to capitalized stockbroking firms. Sixteen (16) Audit firms were engaged to conduct capital verification. The reports of the verification exercise have been submitted to the Commission and are being reviewed. The final list of capitalized CMOs would be made public after the review. The Commission has commenced the process of cancellation of registration of inactive/under -capitalized CMOs. The cancellation of registration of other CMOs with inadequate capital would commence after the final list is released. 7

8. 8 THANK YOU