By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-The Nigerian Stock Exchange (NSE) Wednesday said it’s awaiting the approval of the Securities and Exchange Commission (SEC) on the rules for operating the Investor Protection Fund (IPF).
Oscar Onyema, the Chief Executive Officer (CEO) of the Nigerian Stock Exchange (NSE) made this disclosure at the 2013 Market recap and outlook for 2014.
Onyema affirmed that in October 2013, the rules for operating the IPF were drafted and submitted to the SEC; and currently pending approval. ‘’Meanwhile, a claims verification exercise is underway, in anticipation of the operation of the fund,’’ he said.
According to him, the NSE expects the operation of the investor protection fund to commence as the rules get approved, the Exchange has finalised the modalities for paying out to investors that have filed claims and expect to increase its risk based supervision framework in order to benchmark with other global Exchanges that have rolled out risk based supervision.
We intend to roll out a rules portal so that all the various rules will be accessible with appropriate interpretations to those rules.
The NSE CEO further affirmed that proposals emanating from the Exchange with regards to minimum operating standards for the broker/dealer community will enhance disciplinary process at the Exchange. ‘’We intend to rollout a world class surveillance program,’’ Onyema said.
Onyema said in 2013, in collaboration with Greenwich Trust Ltd., Stanbic IBTC Asset Management Ltd., FBN Capital Ltd., CSL Stockbrokers Ltd., Capital Asset Ltd., and CFA Society Nigeria, the NSE hosted two separate Investor Clinics; one for professional bodies such as the Institute of Chartered Accountants of Nigeria(ICAN), and the other for religious bodies.
‘’Similarly, the Exchange organized 287 other workshops for retail investors in various parts of the country, as part of the bourse?s financial literacy program to educate investors and enhance their potential to save, invest and build wealth, while managing risk. In July 2013, the NSE together with organizations such as the CBN, SEC, National Insurance Commission (NAICOM), Federal Ministry of Finance, Federal Ministry of Commission (NCC) amongst others, joined the Financial Literacy Steering Committee (FLSC), to develop and implement the Financial Literacy Framework for Nigeria,’’ he said.
As earlier reported by a section of the media, the Gamaliel Onosode’s chaired Board of Trustees (BoT) of the NSE Investor Protection Fund, had said it intends to pay the first batch investors whose claims have been verified, by January/February 2014 and then continue the investigation and verification process for the remaining claims.
The IPF was established in line with the provisions of part XIV of the Investment and Securities Act (ISA) 2007, (CAP 124, LFN, 2004) with about N625 million in its accounts.
