SEC raises capital requirements for issuing houses to N7bn, sets June 2027 deadline

The Securities and Exchange Commission (SEC) has raised minimum capital requirements for Nigeria's capital market operators, setting a new threshold of N7 billion for issuing houses offering underwriting services. Non-underwriting issuing houses and trustees will now need N2 billion, while other key operators face significant hikes.

Brokers handling client execution must maintain N600 million, up from N200 million, and proprietary trading dealers need N1 billion. Broker-dealers offering combined services (margin lending, advisory) must hold N2 billion, up from N300 million. For fund management, tier-one portfolio managers with assets above N20 billion now require N5 billion, up from N150 million.

The new framework applies to all SEC-regulated entities, including fintech operators and digital asset platforms. Digital asset exchanges and custodians need N2 billion each, and digital asset offering platforms require N1 billion. Registrars now need N2.5 billion, and rating agencies need N500 million. Central counterparties must maintain N10 billion, and composite securities exchanges need N10 billion.

All affected entities must comply by June 30, 2027. Failure risks regulatory sanctions, including suspension or withdrawal of registration. Transitional arrangements may be considered case-by-case. The circular takes effect immediately, with detailed compliance guidance to follow separately.

This reform aims to strengthen market resilience, align regulatory capital with risk exposure, and support innovation in digital assets and commodities markets. Will your business raise the needed capital, or will this reshape the competitive landscape in Nigeria's capital market?

SOURCE: https://guardian.ng/news/sec-sets-n7b-threshold-for-issuing-houses-n2b-for-trustees/