SEC to launch redesigned e-dividend platform July 31 | Declares zero tolerance for money laundering

The Securities and Exchange Commission (SEC) says it will inaugurate the redesigned electronic dividend mandate management system (e-DMMS) platform on July 31, 2023.

Lamido Yuguda, the commission’s director-general, spoke at the first quarter (Q1) post-capital market committee (CMC) media briefing in Abuja on Thursday.

The e-DMMS portal utilises the Nigeria Inter-Bank Settlement System Plc (NIBSS) robust document management system to which completed e-dividend mandate forms filled by the investor could be uploaded.

First launched by SEC on July 29, 2015, the portal was designed for the use of banks and registrars, to digitise the manual process of verification of shareholders’ account details and ensure efficiency in the enrolment process for e-dividend payments.

Speaking at the event, Yuguda said the NIBSS would be responsible for hosting and disseminating a comprehensive e-dividend form, while registrars would validate them as part of the dividend payment process.

He added that the commission would continue to pursue initiatives that would tackle unclaimed dividends in the market.

“E-dividend mandate management committee notified members of efforts to rebuild the E-dividend mandate management system (e-DMMS),” he said.

“The committee reported on the redesigned e-DMMS platform, which incorporated stakeholder feedback.

“The proposed inauguration date of the redesigned e-DMMS platform is July 31.

“The non-interest capital market implementation committee provided updates on various activities, including its ongoing engagement with the Federal Inland Revenue Services (FIRS).

“The engagement is on the recently released regulations on taxation of non-interest financial instruments.”

Yuguda also said the technical committee on the commodities trading ecosystem collaborated with various commodities exchanges like National Insurance Commission (NAICOM) — the regulator of the insurance industry.

He said the aim was to explore ways of deepening the market by encouraging the involvement of insurance companies and expanding insurance coverage for the commodities trading value chain.

The SEC boss also said the committee engaged the Nigerian Bulk Electricity Trading (NBET) Plc on modalities to establish an energy exchange.

“Another important issue mentioned at the meeting was the approval of rules on the revised National Investors Protection Fund (NIPF), and the registration of five new fintech companies as full-fledged market operators,” Yuguda added.

“They comprise two crowdfunding intermediaries, two digital sub-brokers, and one robo-adviser.

“Full commencement of the Regulatory Incubation (RI) Programme for these companies was also announced during the meeting.”

ZERO TOLERANCE TO MONEY LAUNDERING

Speaking on other issues plaguing the sector, Yuguda reiterated the commission’s commitment to ending criminal practices in the industry.

He said SEC  would continue to apply zero tolerance to money laundering, terrorism, and proliferation of weapons financing obligations.

Yuguda said capital market operators (CMOs) have been informed about the new anti-money laundering and combating the financing of terrorism (AML/CFT) regulations and guidelines.

The SEC boss noted that the guidelines mandated CMOs to comply with stringent reporting obligations in their dealings.

On transactions in the capital market, Yuguda assured investors that the interests of minority shareholders would be protected.

“Protection of investors is the central mandate of the commission and when the commission protects investors, we do not discriminate between minority and majority shareholders,” he said.