Key Updates from 2019 1st Quarter Capital Market Committee Meeting
During the 2019 1st Quarter meeting of the Capital Market Committee, significant progress was reported on e-Dividend implementation, BVN validation by stock brokers and registrars, approved mandates statistics, and major developments in the financial sector. Challenges such as resource constraints and customer resistance to e-DMMS processing fees were highlighted, urging stakeholders to enhance sensitization efforts and facilitate smoother implementation processes.
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2019 1STQUARTER MEETING OF THE CAPITAL MARKET COMMITTEE UPDATEs BY THE e-Dividend Implementation committee
Slide 1 & 2 Slide 1 & 2 PRESENTATION OUTLINE PRESENTATION OUTLINE Slide 3 Slide 3 - - 5 5 MAJOR PROGRESS SINCE THE LAST CMC MEETING Slide 6 - FACTORS RESPONSIBLE FOR DEVELOPMENTS Slide 7 - ISSUES FOR CMC DELIBRATION
3500 Statistics of BVN Validation By Stock Brokers and Registrars in a Year Period 2889 2753 3000 2,627 2,557 2500 2444 2,435 2,436 2364 2,284 2256 2,238 2156 2084 2061 2045 2028 2016 2000 1,933 1805 1,623 1500 1435 1,408 1228 1000 500 229 173 78 0 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Stockbrokers Registrars Total Number of Stockbroking Firms on BVN Portal Total Number of Registrars on BVN Portal - 150 - 11 in February 2019 3
One Year Statistics of Approved Mandates 50000 45817 45000 40000 35000 30000 25000 20740 18111 20000 17228 16572 16027 13166 15000 12268 9360 8673 10000 7569 6430 5000 0 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Total Number of Mandates 2,643,941 4
MAJOR PROGRESS SINCE THE LAST CMC MEETING 4 banks have been migrated to live while 8 banks have signed UAT. The remaining banks are still at various stage of implementation for e- DMMS direct debit. Manual debit of customer account has been ongoing for banks not yet concluded with the test. Registrars, NIBSS & Banks sharing e-DMMS processing fees since April 2018 to date. There has been an unstable enrolment on the e-mandate activities since the cessation of free registration in April, 2018. We enjoin the stakeholders to resume sensitization so has not to loss the momentum gained over the years. Africa Prudential has been on-boarded to e-Passport Portal. We are engaging other registrars to come on board the platform. Email and phone number data search services are still available to registrars and other capital market players in view of upcoming AGMs so that they can update their investor records especially for sending e- Invite.
FACTORS RESPONSIBLE FOR DEVELOPMENTS Investors have become cautious in bearing e-DMMS processing fees. This is reflecting in the low numbers reported for e-DMMS registration Resource constraints at NIBSS and the banks have severely impaired the progress of e-DMMS automation. Some banks claim customers are threatening to sue them for debiting them for the e-DMMS fees as it is not is the guide to bank charges. This is slowing down implementation.
ISSUES FOR CMC DELIBRATION Low registration of e-DMMS Is this borne out of apathy . Resuscitation of Investor Sensitization on e- mandate DCS Project Constraints Challenges of synchronisation of e- Dividend mandate form with DCS form Registrars still demanding Bankers Confirmation for mandate set up for clients without files at Registrars Low patronage of BVN validation Portal by Stockbrokers
