WITHOUT BIOMETRICS, NO MORE INVESTING IN SHARES

From tomorrow, December 1, you can no more walk into a Nigerian stockbroker's office with only your money or cheque book to open an account through which the broker can buy stocks and shares for you.
According to an official notice signed by Tinuade T Awe esq. General Counsel and Head Regulation division of the Nigerian stock exchange (NSE) stockbrokers are now duty bound to take the finger prints and other biometrics before opening accounts for clients.
This is contained in the 6th out of the 31 new regulations which take effect from December 1, 2015.
Before even taking the biometrics. you must identify yourself with two of the following: International passport, National ID, Drivers license, Utility bill, Voters card, employees photo ID issued by an employer with tax identification number. The two documents should verify your full names, photo. current address and signature.
However, how the rule change will apply to existing investment account owners is not clear. If it must apply to them too from Tuesday, then expect the kind of rush and queues that greeted such moves by banks and telecommunications companies.
Other rule changes look set to affect the average investor as well. For example, article 93B has been amended  to insist that stockbrokers must provide the markets central clearing system account details of each client and each trade on such client's behalf shall be by direct credit or debit to the account.
Any client who also pays cash into the account must inform the clearing system by completing direct cash settlements notification form.
Finally, in the event that a client has no account, settlement shall only be paid into a stockbrokers account if written consent is given.
Another very important new regulation is the one that compels stockbrokers to provide clients with factually correct information in plain language devoid of uncertainty or potential to mislead and this shall include or refer to facts or caveats.
Such information must be adequate and appropriate in the circumstances of the client and shall be fully reflected in clear monetary terms with regards to fees, amounts, sums, values and charges. In addition there must no disclosure of a clients confidential information except in line with rules and laws binding on dealing members, aka stockbroking firms.
Some other new rules and regulations likely to affect investors or their interest include the one demanding for detailed electronic monthly statement of accounts to for clients; the setting up of a clients complaints desk or process to handle complaints within 10 days or either party can raise such with the exchange and the setting up of an investors protection fund by the exchange.

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