Stakeholders in the capital market are awaiting the approval of the Securities and Exchange Commission (SEC) to approve the harmonised Complaint Management Framework (CMF) expected to make the process of complaints handling more efficient and investor friendly.

Currently, investors resort to as many as six different places to lay their complaints, a process that is plagued by delays, partial, selective and non-resolution of complaints that most times lead to frustration and loss of confidence.

As part of market reform efforts of the SEC, a committee was set up to develop a uniformed CMF for the market. The committee, headed by the Chairman of Association of Stockbroking Houses of Nigeria (ASHON), Mr. Emeka Madubuike, has since submitted its report.

However, nothing has been heard about the report while investors continue to face frustration due to poor handling of their complaints.
But THISDAY checks revealed the board of the commission was yet to approve the report of the committee.

“As you are aware, the report has been submitted to the SEC and we are hoping that it would be approved soon. I believe the issue will come up at the next Capital Market Committee meeting holding  soon,” a  market source said on Monday.

Throwing more light on the framework last year, Director-General of SEC,  Ms. Arunma Oteh, had said it would  entail a systematic and well-articulated education of the investing public on ‘where to go, what to do and what to expect’ in lodging and following up on complaints related to capital market transactions.

Also speaking early this year, Madubuike said  the  harmonised CMF was  expected to overcome the ills currently being experienced in the market.

According to him, the framework would be broken down into complaints involving client and operators; between operators, against regulators/Self-regulatory Organisation (SRO), SRO and regulator; trade manipulation, accounting frauds, Ponzi schemes among others.

“The classification is to ensure clarity and simplicity, and enhance effectiveness of the initiative. The framework will promote self-regulation by recognised trade groups of operators in the market, ensuring that the groups are structured to handle complaints, which is scrutinised to ensure it is fair and firm, and in line with the approved code of conduct of the group. Such trade groups are required to render periodic report of complaints handled to the SRO and regulator for information and necessary action,” he said.

He said it was expected that the recommendations and sanctions arising from handling complaints would have the backing of the SRO and apex regulator that are legally empowered to do so.

Source: Thisday (by Goddy Egene)