Updates on 2019 Capital Market Committee Meeting
Summary of the 2019 3rd Quarter Meeting of the Capital Market Committee and progress in e-Dividend implementation, including trends, challenges, solutions, and recommendations for stakeholders. Issues related to e-DMMS service charges, BVN validation, low registration pace, and Direct Cash Settlement (DCS) implementation.
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Presentation Transcript
2019 3RDQUARTER MEETING OF THE CAPITAL MARKET COMMITTEE UPDATEs BY THE e-Dividend Implementation committee
QUARTERLY TREND OF PROGRESS IN 2019 Summary of 2019 Quarterly trend of total approved e- dividend mandates, from inception of the exercise (November, 2015), stands as follows: 2,643,941 - end of 1st Quarter, 2019 2,702,738 - end of 2nd Quarter, 2019 2,820,065 - end of 3rd Quarter, 2019 The appreciable upswing of 117,327 approved mandates recorded in the 3rd Quarter, compared to the 58,797 of 2nd Quarter, was due to: Access granted to all Capital Market Operating Institutions to the Bank Verification Number Validation Service
QUARTERLY TREND OF PROGRESS IN 2019 BVN Validation Service adoption as a means of KYC in the Capital Market; Significant upsurge in the number of Capital Market Operating Institutions that approached NIBSS for on-boarding to the BVN Validation; Email and phone number data search services available to registrars and other capital market players which enable them update their investor records especially for sending e-Invite; Improved payments of backlog and current dividends by Registrars;
ISSUES FOR CMC NOTING Unabated threat of court actions against the application of e-DMMS service charge by their customers slowing down the automation process based on claim that e-DMMS fees is not in the guide to bank charges. The SEC has commenced the process of engagement with the CBN in this respect. Some Registrars are still demanding Bankers Confirmation for e-dividend Account mandate request by investors. The ICMR Council may wish to enforce the CMC resolution on this subject. Low patronage of BVN validation Portal by Stockbroking Firms, despite the reduction in price from N25 to N15 since January, 2019. The Committee noted that the present general low pace of registration is borne out of investors unawareness and/or apathy. It, accordingly, hereby recommends increased awareness campaign by all Stakeholders.. In this respect, a revised plan, for a more effective awareness campaigns, on the exercise would soon be made available to the SEC for consideration. Direct Cash Settlement (DCS) s full implementation is still awaiting the completion of synchronisation of the e-Dividend mandate Form with the DCS form. This is expected to be completed and adopted by end of 1st quarter 2020 to enable the kick-off of implementation by 2nd quarter of same year.
