SEC Nigeria Sponsored Individual flashcards
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32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Sponsored individual
- A person registered by the SEC after being sponsored by a registered capital market operator to perform a regulated function such as dealing, broking, or portfolio management.
- ISA 2025
- Nigeria's Investments and Securities Act that establishes the SEC as apex regulator and governs capital market operations, replacing the 2007 Act.
- Prospectus registration
- The SEC must register a prospectus before any public offer of securities; it must disclose business, risks, use of proceeds, and audited financials.
- Collective investment scheme
- A pooled investment vehicle such as a unit trust or mutual fund, managed by a fund manager and overseen by a trustee under SEC rules.
- Preference shares
- Equity class ranking ahead of ordinary shares for dividend payment and return of capital on liquidation, usually with limited voting rights.
- Sukuk
- A Shariah-compliant certificate representing ownership in an underlying asset or project, paying returns without interest, registrable with the SEC.
- Front-running
- Trading ahead of a client order using knowledge of that order to profit personally; prohibited under SEC code of conduct.
- Fit and proper
- The SEC's assessment of honesty, competence, financial soundness, and absence of disqualifying misconduct for registration of operators and sponsored individuals.
- Churning
- Excessive trading in a client account to generate commissions without regard to the client's investment objectives; a prohibited conduct.
- Insider information
- Material, non-public information about a security or issuer; trading or tipping on it is prohibited under the ISA and SEC rules.
- Suspicious transaction report
- A report filed with the Nigerian Financial Intelligence Unit when a transaction appears linked to money laundering or terrorist financing.
- Tipping off
- Disclosing to a client or third party that a suspicious transaction report has been filed, which is itself an offence.
- Placement stage
- First stage of money laundering, where illicit cash enters the financial system, often through deposits, purchases, or structured transactions.
- Politically exposed person
- An individual entrusted with prominent public office, or their close associate or family member, requiring enhanced due diligence.
- Beneficial owner
- The natural person who ultimately owns or controls an account or legal entity, whose identity must be traced and verified.
- Suitability assessment
- Matching a product's risk and features to the client's objectives, time horizon, risk tolerance, and financial capacity before recommending it.
- Enhanced due diligence
- Heightened identity verification and transaction monitoring applied to high-risk clients such as PEPs and high-risk jurisdictions.
- Know Your Customer
- The process of identifying a client, verifying identity documents, and understanding the nature and purpose of the relationship.
- T+2 settlement
- Nigerian equities trades settle two business days after execution, with CSCS acting as central depository and clearing house.
- CSCS
- The Central Securities Clearing System, Nigeria's central depository and clearing house for securities, holding investor accounts via stockbrokers.
- CHN
- Clearing House Number, the unique identifier assigned to an investor's securities account within the CSCS depository system.
- Price-time priority
- Order matching rule where the best price executes first and, at the same price, the earliest order executes first.
- Circuit breaker
- A market-wide or security-level trading halt triggered when price movements exceed prescribed limits, allowing cooling-off and information dissemination.
- Corporate action
- An event such as a dividend, bonus issue, rights issue, or split that affects shareholders' entitlements, processed via the registrar and CSCS.
- Investments and Securities Tribunal
- A specialized court established under the ISA to hear capital market disputes, with appeals going to the Court of Appeal.
- Administrative Proceedings Committee
- The SEC committee that hears enforcement and disciplinary matters against market operators and sponsored individuals before decisions issue.
- Asset segregation
- The requirement that client funds and securities be held separately from the firm's own assets, protecting clients if the firm fails.
- SEC investor alert
- A public notice warning investors about unauthorised operators or fraudulent schemes; verifying SEC registration is a primary protective step.
- Nigerian Code of Corporate Governance
- The 2018 code applying on an 'apply and explain' basis, setting board composition, independence, and governance principles for Nigerian companies.
- Continuous disclosure
- The obligation of listed companies to announce material events promptly, such as board changes, litigation, and dividend decisions.
- Related-party transaction
- A transaction between a company and a director, substantial shareholder, or their associate, requiring disclosure and often shareholder approval.
- Independent director
- A non-executive director free of material relationships with the company, expected to bring objective judgment to board decisions.