November, 2016
Ade Bajomo
Agenda
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• Update on DCS Account Sep-up Requests to Settlement Banks
• Update on BVN Validation
• Analysis of Rejected DCS Account Set-up Requests
• Major Challenges
• Recommendations
• Q&A
November 2016
CONFIDENTIAL
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Update on DCS Account Set-Up Requests to Sett. Banks
DCS Account Set-Up Requests (YTD)
1200
1034
1000
800
615
600
400
238
200
0
Requests Received
Accounts Set Up
Rejected Requests
Number of DCS accounts Set Up, By Sett. Banks(YTD)
250
235
200
150
136
.
100
50
6
28
49
38
15
5
12
9
0
0
21
2
0
3
0
Number of DCS Accounts Set-up by Sett. Banks
DCS Responsive Banks: First Bank, GTB, Skye Bank, Stand. Chartered, Zenith , Fidelity, Sterling,
Heritage
Unresponsive Banks: Access, Keystone, Unity Bank
Delayed Response : Diamond Bank, StanbicIBTC , UBA, Union Bank
November 2016
Note: Responsiveness implies 48hours revert to the CSCS
CONFIDENTIAL
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Update on BVN Validation by Brokers
BVN Validation by Brokers on NIBSS Portal (YTD)
900
800
791
762
741
680
700
604
595
600
500
480
442
433
400
336
300
.
200
100
0
Jan
Feb
Mar
Apr
May
Jun
July
Aug
Sep
Oct
Number of Brokers Set up under NIBSS Set Up (YTD) – 89
November 2016
CONFIDENTIAL
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Analysis of Rejected DCS Account Set-Up Requests
Rejected DCS Account Set-Up Requests, Q1 & Q2 2016
45
40
40
38
35
30
25
20
.
15
10
7
4
5
2
2
0
0
0
Irregular Investor Signature at
Bank
Closed Accounts
Documentation Error
Q1
November 2016
Pending BVN update at the Bank
Q2
CONFIDENTIAL
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Major Challenges
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Need for Sustained Enlightenment – Print/Radio/Television/Social media
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Delay from Settlement Banks - Confirmation of Account Holder Details
Action by
the CSCS
November 2016
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Lack of Proper Documentation of Investor Account Set-Up Requests by
.
Investors/Brokers
- Lead to increased number of rejected Requests - CSCS & Sett. Banks
4
Unresponsiveness of Some Settlement Banks to confirm account
holder details to the CSCS
CONFIDENTIAL
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Recommendations
Recommendations
Drive market initiatives to broaden and deepen sensitization campaign and
publicity - Radio /Tele jingles; Talk shows; Print media; Regional investor forums;
Social media - SEC,NSE, CSCS, Brokers
Action by
the CSCS
Further engagement with NIBSS to allow CSCS access to their portal for validation
at zero cost, as they are only reconfirming validation already paid for by Brokers –
CBN/SEC
CBN to. impress on Settlement Banks to respond to confirmation requests from the
CSCS. - CBN.
Extensive check of DCS forms/documentation by Broker Dealer Firms before
submission to the CSCS – Dealing Member Firms
Continued investor education by Broker Dealer firms,
process/documentation requirements – Dealing Member Firms
on
DCS
Further engagement with Bank CEOs on improved turnaround – CSCS/NSE
November 2016
CONFIDENTIAL
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Recommendations
Recommendation (contd)
Action by
the CSCS
November 2016
Turn the. process on the head – Get 5m investors registered
- Make DCS Mandatory for all Capital Market Transactions
- Make Opt-out from DCS optional
investors SEC,NSE, CSCS, Brokers
CONFIDENTIAL
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9
CONFIDENTIAL
THANK YOU
Questions & Answers
November 2016
CONFIDENTIAL
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