SEC Cuts Cost, Time For Transmission Of Deceased Investors’ Shares

The Securities and Exchange Commission (SEC) has cut down the time, processes and costs of the transmission of shares from a deceased investor to their beneficiaries.

The capital market regulator said in a statement on Thursday that the decision is to reduce the quantum of unclaimed dividends in the Nigerian capital market.

The decision will also encourage beneficiaries of deceased investors to step up efforts to claim such dividends.

A statement by the SEC spokesperson, Efe Ebelo, said the effort would ensure seamless transmission and claim of a deceased’s shares by heirs and administrators.

“In an amended draft on the operating framework for transmission of shares, SEC has reduced the timeline for the transmission of deceased’s shares from three weeks to one week,” Mrs Ebelo said.

Going by the new arrangement, she said registrars are expected to ensure shares of a deceased invested are transmitted within a week of receiving the request from the administrators or executors.

She said the registrar is also required to transmit the Letter of Administration to the Probate Registry within 24 hours of receipt of same for verification.

The administrators/executors, the SEC spokesperson said, are however required to provide a letter introducing them as the legal representatives of the estate.

“The letter should also indicate the names, addresses, signatures and BVNs of the individual Administrators/Executors,” she said.

Other requirements include the 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.

Also, a copy of newspaper advert placed by the Court or Gazette, in addition to any evidence of ownership of the investment, like a Central Securities Clearing System (CSCS) statement(s) of the deceased, original share certificates, dividend stub or dividend warrants or bank statement(s), showing receipt of dividend(s) into the account(s) of the deceased.

“Where the Administrator/Executor cannot provide these requirements, the Registrar may require confirmation through insurance, indemnity or interview” the SEC said.