While you were away!
CROWD FUNDING TO BE REGULATED IN NIGERIA AS SEC REVEALS THAT REGULATIONS ARE UNDERWAY
The Securities and Exchange Commission (SEC), has said that the commission is working on a framework to regulate the use of crowdfunding by small businesses to raise capital.
This was stated recently by the Acting Director General of the SEC, Ms. Mary Uduk in an interview with journalists, on the side-lines of the annual meetings of the World Bank and International Monetary Fund (IMF) in Washington DC.
Uduk said the move is aimed at protecting investors in the capital market.
“Investors’ confidence is central to our job as the regulator of the capital market. People must have the confidence to invest,” she said.“With crowdfunding, private companies like SMEs can raise money to raise long-term funds using regulated platforms. The platform of the crowdfunding will be regulated by the SEC.”
PENCOM BARS PFAS FROM COLLECTING BOND’S BROKERAGES FEE
The National Pension Commission (PenCom) has announced that Pension Fund Administrators are no longer required to negotiate or receive a portion of the brokerage commission from Primary Dealer Market Makers (PDMMs)/Issuing Houses/Receiving Agents.
What it means: It means that capital market operators, duly registered by the Securities and Exchange Commission (SEC) shall not pay or offer a percentage of the commission earned from services provided in a transaction as an incentive for investment.
In a statement signed by Head, Investment Supervision Department, PenCom, Dr Farouk Aminu, the regulator explained that the directive is in line with SEC’s circular, which was issued on July 27, 2019, that directed that only capital market operators are eligible to be paid brokerage fee/receiving agents’ commission.
The statement read, “Any PFA that wilfully negotiates or receives brokerage commission from PDMMs/Issuing House/Receiving Agents shall be sanctioned in line with the commission’s regime of sanctions and penalties.”
CBN ISSUES UPDATE ON CASHLESS POLICY EXEMPTS FEDERATION ACCOUNTS, MICROFINANCE BANKS AND OTHERS FROM IMPLEMENTATION
The Central Bank of Nigeria (CBN) has exempted all revenue-generating accounts of government agencies and ministries, microfinance banks and several others from charges on cash withdrawal and deposits as imposed by the new cashless policy.
According to the new circular addressed to all Deposit Money Banks (DMBs), the CBN disclosed that exemption is given until March 30, 2020 when it would be reviewed.
In the circular signed by Sam Okojere, the Director, Payment System Management Department, CBN stated that all embassies, diplomatic missions, multilateral and aid donor agencies in Nigeria, as well as revenue-generating accounts of government agencies, are exempted from charges on cash withdrawal and deposits with regard to the implementation of the cashless policy.
The apex bank also disclosed that the float accounts of Mobile Money Operators and the accounts Microfinance Banks (MFBs) and Primary Mortgage Institutions (PMI) keep with DMBs are equally exempted from the charges on cash withdrawal and deposits.
According to the CBN, the exemptions would last until March 31, 2020, when it would be reviewed.
CBN ISSUES NEW DIRECTIVES ON TBILLS
On Thursday 17th October, banks across the country were given a directive from the Central Bank of Nigeria to cancel any customer requests for purchase of Treasury Bills at Primary or OMO auctions, if such customers are borrowing customers of such banks or those of other banks. This also includes those enjoying CBN intervention loans. This directive is believed to be as a result of the CBN’s recent efforts to promote lending to the real sector by commercial banks.
The CBN had in July 2019 sent a circular to all Deposit Money Banks (DMBs) mandating that they maintain a minimum Loan to Deposit Ratio (LDR) of 60% by September 2019 subject to a quarterly review. Barely three months after the first circular, the apex bank raised the bar, mandating banks to now maintain a minimum LDR of 65% by December 2019. The punitive measure for non-compliance by DMBs is a levy of additional Cash Reserve Requirement (CRR) equal to 50% of the lending shortfall of the target LDR and some banks were debited in September 2019 for failure to meet the 60% minimum.
DOLLAR EXCHANGE RATE REPORT 14TH OCT TO 25TH OCT 2019
This report is a compilation of the dollar exchange rate at the official and parallel market from the 14th of October to the 25th of October 2019. The quoted parallel market prices are to serve as a guide to readers, as they represent the average price obtained daily from different black-market dealers in the Country.
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