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Automated process for Inactive-Member Transfers

Automated process for Inactive-Member Transfers

As part of our commitment towards improving our processes and providing value to the Nigerian Capital Market, CSCS Plc, has introduced a new feature to the Data Exchange Portal, with an automated Inter-member transfer process, for stockbroking firms designated as inactive.

Inter-member transfer refers to the transfer of an investor’s portfolio from one stockbroking firm to another stockbroking firm.

Initiating an inter-member transfer from an inactive house to an active house has been designed to be completely remote (making use of the CSCS Data Exchange Portal) and relies on the use of a token and one-time password sent via SMS to enhance the security of the process.

Below are highlights of the updated process:

  • A one-time Onboarding Form and Indemnity Letter is to be filled, signed and submitted by all stockbroking firms.
  • The managing director of the active stockbroking firm is expected to provide all required information such as mobile number, CIS number, official email address etc.
  • Upon receiving a request for account transfer from an investor, the firm will initiate the same request on the Data Exchange Portal by completing the online form.
  • All necessary documentation required for the transfer will be uploaded with the use of the firm’s registered token. Please find below the list of the required documents:
  1. A copy of the investor’s KYC document used in opening the account under the Target Stockbroking Firm (i.e. the active stockbroking firm);
  2. Details of the investor’s Bank Account (Banker’s confirmation), operated for a minimum period of 6 (six) months’;
  3. A duly executed Direct Cash Settlement Form’;
  4. Evidence of share ownership from the investor such as: Contract Notes, Purchase Receipts or Dividend warrant stubs’;
  5. Means of investor identification which could be any of the following: National Identity Card, Current Driver’s License or Current International Passport’;
  6. Evidence of CSCS Biometrics capture;
  7. Other necessary documentation (applicable to transfers which involve Corporate or Estate accounts):

Estate accounts – Letter of Administration or a will that is registered with a Probate Registry and Death Certificate;

Corporate accounts – CAC Certificate of Incorporation, details of Director ownership, BVN of all Directors.

  • After successful upload of the last document, a One-Time system generated Password (OTP) will be sent via SMS/Email to the managing director of the Target Stockbroking firm.
  • The managing director is expected to log in to view the pending request. Upon confirmation of the request, the managing director, is required to approve the request using the OTP sent to his/her phone/email.
  • In the event that the managing director approves the request, CSCS Plc receives the same request for necessary review and final processing; however, if the managing director is not satisfied with the request, they can decline, using the same OTP providing the reasons for the rejection.

Please Note:

  • The current Data Exchange Platform would be used for the updated process.
  • A mandatory one-time onboarding form must be filled by MD’s of all stockbroking firms. These forms should be submitted to CSCS for onward activation on the Data Exchange.
  • CSCS Plc will no longer receive submissions of documents relating to inter-member transfer of accounts at the Customer Care Center after the launch date of the 16th March 2020.
  • Brokers can retrieve the evidence of biometrics capture from the investor; or request for an e-copy by sending an email to [email protected]
  • Token usage is mandatory for request initiation.
  • The One-Time-Password sent to the Managing Director will be valid for 48 hours only.
  • All requests in a “pending” state (at the stockbroking firm’s end) that are not attended to for a period of 48hrs, will be discarded.
  • All CEO’s and designated representative are required to complete their onboarding before 16th March, 2020.

 

Kindly download the required forms and the full manual below for a step-by-step guide on the updated process which will be open for use from 16th March 2020.

Download Manual Download Indemnity Form Download Onboarding Form

As always, we are committed to serving you better and we appreciate your business and continued patronage.

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