gender differential paper IJCRB

ijcrb.webs.com
JUNE 2011
INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 3, NO 2
xiii. Submission of two (2) sets of completed SEC Form2 for a minimum of two (2)
sponsored individuals to be accompanied with:
a. Detailed Curriculum Vitae (copies of all educational certificates).
b. Three reference letters as specified in SEC Form2.
c. Resignation and acceptance letter from previous employer(s) where
applicable.
d. Police clearance (a referral letter to be obtained from Lagos Zonal Office to
FIIB Alagbon Close, Ikoyi, Lagos).
e. Previous employer’s report.
xiv. Fees Form SEC 3B [N5000] and Form SEC 2 [N1000] per sponsored individual. Venture
Capital Registration Fees N50000. Minimum Paid Up Capital N20million.
xv. Post Registration Requirements:
a. All registered venture capital fund managers shall be inspected periodically.
b. Authorization fees – 1% of the take off funds of the company.
c. Operational guidelines of the fund.
xvi. Renewal
a. Renewal of Registration – Every two (2) years, N20000.
b. Renewal of sponsored individual – Every two (2) years, N1000 per individual.
xvii. Submission of Form SEC 2A & B for Transfer of registered individuals (where
applicable).
xviii. Submission of Form SEC7 for the amendment of registration information (where
applicable).
xix. Submission of Form SEC 9A & B for Renewal of registered individual (where
applicable).
These stringent registration requirements are meant to ensure that a solid foundation is laid for
effective corporate governance in firms that will be soliciting for investment funds, and to ensure
that investments are professionally managed and judiciously invested in various capital and
money market instruments. A major investment vehicle is called Mutual Funds or Unit Trust
Schemes, where funds are pooled together from a group of people and invested in stocks, bonds,
properties and other securities on behalf of investors. These investment channels constitute
underlying assets which are missing in ‘wonder bank’ cases. The Mutual Funds come in varieties
of forms, depending on investment channels, risk and benefits.
In reality, some investment funds managers are duly registered, and from all intents and
purposes, are run as legal vehicles to mobilize investment funds. In contrast with ‘wonder
banks’, Nigeria’s Meristem Securities put this clearly as: “The Fund Manager and the Fund itself
must be registered with the Securities and Exchange Commission [SEC] and should not be
confused with some dupers who pride themselves as money makers otherwise known as ‘wonder
banks.’” Some of the mutual funds managers authorized and operating in Nigeria are: UBA
Asset Management Limited, FSDH Asset Management Limited, IBTC Asset Management
Limited, Asset Resource and Management Limited, Intercontinental Capital Markets Limited,
Zenith Capital Limited, CSL Stockbrokers Limited, Denham Asset Management Limited,
Cashcraft Asset Management Limited, Afrinvest [West Africa] Limited and PHB Asset
Management Limited.
The firms that engage in ‘wonder banking’ are usually not dully registered as investment fund
managers. Some of the firms are registered for businesses completely different from funds
management. A critical analysis of the motive of these firms may support a number of
conjectures. These are:
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