Capital market operators have called on the Securities and Exchange Commission (SEC) to revive the activities of its Administrative Proceeding Committee (APC) as one of the ways to restore investor confidence in the nation’s capital market.

The APC is an conflict resolution mechanism of  the apex regulator of the  capital market established in year 2000 pursuant to section 29(7) and 259 of the Investments and Securities Act (ISA) No. 45 1999. It was set up to resolve disputes and conflicts in the   capital market.

Although the Director-General of SEC presides over the APC,  it consists of  members of the board of the commission and directors in the operations departments of the commission .

There are  observers who are representatives of trade associations in the market  such as brokers, registrars, trustees, issuing houses  among others.

However, THISDAY checks revealed that the committee had not been sitting for  some time now. Some market operators, who are members of the APC, confirmed the   dormancy of the APC, saying it is affecting investors’ perception of the market.

And in order to accelerate   revival of the market and restore investors’  confidence,  operators said APC should be allowed by SEC to resume its usual sitting and resolve pending conflicts and disputes.

“I can confirm to you that I am member of the APC but we have not sat for some time now. But honestly, I cannot tell you the reason for our not sitting. I know there are some pending cases before the APC that I think should be resolved and help in the confidence building process in the market,” the source said.

Another source, who is also a member of the committee said: “I was told that the complaints were being addressed administratively (more efficiently) at management level (by SEC) without  having to incur the cost and time involved in  arranging APC sittings.”

However, no official of SEC was available for official comments on the issue before going to press last Monday.

THISDAY checks revealed that 11 cases were before the APC as at March 2011.  One of the cases was resolved with some of the parties reprimanded, some others penalised while some discharged on the charges.

Five of the  cases have been discontinued and suit instituted at the Investment and Securities Tribunal (IST) while five cases are yet to be concluded.

The pending cases include: SEC vs Davandy Securities Limited and 11 others; SEC vs Alliance Capital Management Limited and nine others; SEC vs Proforte Securities Limited and nine others; SEC vs Empire Securities Limited and seven others and SEC vs Mtech Communications Plc.

Source: ThisDay/Goddy Egene