STL Trustees Capital Market & Money Market News Recap

While you were away!

FMDQ LAUNCHES INVESTOR PROTECTION FUND

FMDQ OTC Securities Exchange has launched an Investor Protection Fund (IPF), to boost and sustain investors’ confidence in the Nigerian capital market.

The establishment of the Fund is in compliance with the provisions of Part XIV of the Investments and Securities Act 2007 and represents a major milestone in the achievement of the FMDQ’s mandate to provide a secure and credible platform supported by global best practices.

The FMDQ-IPF was established for the purpose of compensating investors who suffer pecuniary losses arising from insolvency, bankruptcy, or negligence of a dealing member of the OTC Exchange, as well as defalcation committed by a dealing member or any of its directors, officers, employees, or representatives in relation to securities, money or any property entrusted to, received, or deemed received by the dealing member in the course of its capital market activities.

According to the Exchange, “Through this landmark achievement, the OTC Exchange is positioned to support the investor protection mandate of the Securities and Exchange Commission, which guided by the 10-year Nigerian Capital Market Master Plan, launched the National Investor Protection Fund (NIPF) in 2015 for the purpose of compensating investors whose losses are not covered under the Investor Protection Fund administered by securities exchanges.

FGN ISSUES 2 AND 3 YEARS SAVINGS BOND IN AUGUST 2017 AT 13.535% AND 14.535% PER ANNUM

The Debt Management Office (DMO) on Monday 7^th August 2017 announced that The Federal Government of Nigeria (FGN) has issued a new round of FGN Savings Bond on the 7^th of August, 2017 which is slated to close Friday, August 11, 2017.

The 2 year bond is offered at an interest of 13.535%, while the 3 year bond is offered at an interest of 14.535 respectively.

The details of the offer is as specified below;

Summary of August 2017 Offer

2-Year FGN Savings Bond due August 16, 2019: 13.535%

3-Year FGN Savings Bond due August 16, 2020: 14.535%

Opening Date: August 7, 2017

Closing Date: August 11,  2017

Settlement Date: August 16, 2017

ISSUER: Federal Government of Nigeria (“FGN”)

UNITS OF SALE: N1,000 per unit subject to a minimum Subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50,000,000.

INTEREST PAYMENT: Payable Quarterly

REDEMPTION: Bullet repayment on the maturity date.

SEC RELEASES REPORTING TEMPLATES TO CAPITAL MARKET OPERATORS FOR THE RENDITION OF VARIOUS RETURNS FOR AML/CFT AND NFIU

The Securities and Exchange Commission (SEC) has approved and uploaded reporting templates required for rendition of other categories of the Anti-Money Laundering/Combating Financial Terrorism (AML/CFT) returns in line with the SEC AML/CFT regulations for Capital Market Operators (CMOs), in addition to Foreign Exchange Transaction Reports  (FTRs), Suspicious Transaction Reports (STRs) and Currency Transaction Reports (CTRs) required to be rendered in accordance with the provisions of the Money Laundering Prohibition Act, 2011 (as amended) and Terrorism Prevention Act, 2011 (as amended).

In a circular published on the Commission’s website, CMOs have been advised to use the Consolidated Grid Template for the Rendition of Various Returns to the SEC and NFIU as applicable.

The SEC also advised that all returns be submitted electronically as the Commission will not accept any AML/CFT report that is submitted in hard copies.

CMOs are also to note that all the returns are statutory and therefore strict compliance with the circular is expected.
 DOLLAR EXCHANGE RATE REPORT 1^st AUGUST TO 11^th AUGUST, 2017

This report is a compilation of the dollar exchange rate at the official and parallel market from the 1^st of August to the 11^th of August, 2017.  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.