SEC introduces more flexible guidelines for transmission of shares

The Securities and Exchange Commission (SEC) has introduced new, more flexible guidelines for transmission of shares from the deceased to a beneficiary.

SEC which announced the new procedure in its amendment draft on the operating framework for the transmission of shares, called on beneficiaries of deceased investors to step come forward to claim their dividends.

According to the guidelines, the registrar shall ensure that the shares of a deceased are transmitted within a week of receiving the request from the administrators or executors.

The registrar would also transmit the Letter of Administration to the Probate Registry within 24 hours of receipt of same for verification.

The administrators/executors are, on the other hand, required to provide a letter of introduction, introducing themselves as the legal representatives of the estate.

The letter should indicate the names, addresses, signatures and BVNs of the individual administrator/executor.

In addition, the executor is to provide original Death Certificate from the National Population Commission (NPC) for sighting, original probate letter or Letter of Administration for sighting or the Certified True Copy (CTC) from a Notary Public.

Other requirements include copy of newspaper advert placed by the Court or Gazette, evidence of ownership of the investment in form of CSCS statement of the deceased, original share certificates, dividend stub or dividend warrants or bank statements showing receipt of dividend into the accounts of the deceased.

When the executor cannot provide the above however, “the registrar may require confirmation through insurance, indemnity or interview.”

SEC said fees chargeable for transmission of shares by registrars is being limited to one percent of the total value and additional five percent Value Added Tax (VAT) for shares of N5 million and below, including 0.5 percent of the value and five percent VAT on shares above N5 million with a maximum chargeable amount of N200,000, excluding VAT.