By Yakubu LAAH InvestAdvocate

Lagos (INVESTADVOCATE)-Nigerian fund managers last week said N695 billion are under management on the collective investment schemes (CIS), which include mutual funds, individual and institutional funds, a recent report from the Fund Managers Association of Nigeria (FMAN) said.

Michael Oyebola, president, of FMAN disclosed this last week at a meeting of members operating in the industry. “The total managed funds is made up of about N200 billion under collective investment schemes and N495 billion funds under management,” he said.

He also disclosed that FMAN has commenced strategic moves to position the association to perform fund management role in the Pension industry under the effective and efficient regulation by National pension Commission (PENCOM) which has grown into a N4.9 trillion market.

Oyebola said one of the strategic moves to play in the pension industry is joining the emerging market task force joint committee- which comprises of the Treasury in the United Kingdom (UK).

The president of Nigerian fund managers said plans are underway to develop a customised platform for mutual funds distribution which will operate as an open architecture platform that will enable members to distribute their mutual funds in more cost efficient means.

He affirmed that with the approval of the acceptance of voters card as a Know-Your Customer (KYC) document, effort are in top gear to put together a mobile money platform that will address
the various need of member firms.

According to him, FMAN is striving to become a self-regulatory organisation (SRO) with power to handle compliance, complaint and standardisation issues between its members and the public.

Also, he advised member firms to commence the practice of asset segregation- meaning separating their asset from customers asset before the Securities and Exchange Commission (SEC) begins to enforce compliance.

He reminded members firms on the deadline given by SEC on the new minimum capital requirement and enjoined them to meet up with it in order to remain in business.

As part of boosting the industry and ensuring best practice, Oyebola disclosed that FMAN had launched the asset managers’ codes in conjunction with the Chartered Financial Analyst (CFA) Society of Nigeria, Fund Managers Association of Nigeria (FMAN) and Pension Fund Operators Association of Nigeria (PENOP), to include general principles of conduct and asset managers’ code of conduct.

The Nigeria’s fund managers president gave highlights of the codes provisions in relation to asset managers responsibilities to clients these include, to act in a professional or ethical manner at all times, to act for the benefit of the client, to act with independence and objectivity, to act with skill, competence and diligence, to communicate with clients in a timely and accurate manner and to uphold the applicable rules governing capital markets.

He further affirmed that SEC had approved the codes and would ensure all members of FMAN adopt same.

Mounir Gwarzo, director-general (DG), Nigeria’s SEC who was represented by Mary Uduk, director, Investment Management Department at the meeting said the new rules currently undergoing perfection are designed to enhance the foundation operational standard and perception of the public on the capital market.

The director, Investment Management Department at SEC highlighted the principal objectives of new rules which include safeguarding the integrity of the players and the sector, creating opportunities in asset product type and classes and inflow of funds into the sector.

Others are directing inflow of funds into the sector, introducing a risk based capital adequacy framework – as a progression from the current minimum capital requirement challenges by the failure in aligning firms’ capital with risk arising from operation, business and market activities.

SEC also said it will implement risk based supervision of capital market Operators (CMOs) with emphasis on strong corporate governance and robust enterprise risk management framework.

Uduk says SEC will provide a framework to introduce alternative fund types such as expert/professional investor fund restricted to only qualified firms and with absolute discretion on choice of asset class and investment sector.

On her part, Sade Odunaiya, president, CFA Society Nigeria in her presentation on Global Investment Performance Standards (GIPS), affirmed that the current objective is to prepare and get Nigeria listed among over 30 developed and developing nations of the world who have met the GIPS compliance and adherence standards.

She revealed that currently the CFA Society of Nigeria, PENOP and FMAN are the members of the GIPS sponsoring body in Nigeria known as Nigeria Investment Promotion Commission (NIPC). “Members of NIPC intend to invite SEC and PENCOM to serve on its board on observer status,” Odunaiya said.

The president of CFA Society Nigeria further disclosed that the Society is planning a four (4) year period for full adoption of GIPS by operators in the Nigerian capital market.