The Securities and Exchange Commission (SEC) has introduced a major revision to capital requirements for fund and portfolio managers, requiring Tier 1 firms (managing assets above N20 billion) to hold N5 billion in capital, with an additional 10% of Assets Under Management (AUM) for those managing over N100 billion.
Okay News reports that the new framework, outlined in a circular issued on January 16, 2026, aims to enhance market resilience, investor protection, and regulatory alignment with the scale and risk of operations.
Under the revised rules, mid-tier managers must maintain N2 billion.
Private equity firms require N500 million, venture capital firms N200 million.
The dynamic 10% AUM rule applies to large managers, meaning a firm with N11 trillion in AUM, like Stanbic IBTC Asset Management, would need to hold at least N1.1 trillion in regulatory capital.
Other thresholds include: brokers N600 million, dealers N1 billion, broker-dealers N2 billion, issuing houses N2 billion to N7 billion depending on scope, and digital asset platforms N2 billion.
The SEC has set a compliance deadline of June 30, 2027, giving operators 18 months to meet the new standards.
Industry stakeholders have expressed concerns over the steep increases, particularly for large asset managers, arguing it could lead to consolidation or reduced diversity in the sector.
The changes are part of broader reforms, including the 2023 Digital Assets Rulebook for Virtual Asset Service Providers (VASPs).
