SEC Warns Capital Market Operators Against Unethical Practices

L-R, Treasurer, Fund Managers Association of Nigeria, Mrs Tope Omojokun, President, FMAN Mr Dayo Obisan, Acting, Director General, Securities and Exchange Commission Ms Mary Uduk and Acting Executive Commissioner, Operations, SEC Mr Isyaku Tilde during a Meeting between SEC and FMAN in Abuja at the weekend

22/7/2019/SEC

Newly Qualified Authorised Dealing Clerks of the Nigerian Stock Exchange have been warned that the Securities and Exchange Commission, SEC, does not tolerate infractions and because of this, steps are taken to ensure that regulatory oversight is more effective; investor protection is advanced, while systemic risk is mitigated.

The Inductees were therefore urged to abide by the highest principled standard expected in their profession.

Speaking at their induction ceremony in Lagos, Acting Director General of the Securities and Exchange Commission, SEC, Ms. Mary Uduk, also enjoined them to maintain the integrity of their  profession and imbibe the culture of compliance to rules and regulations, as well as transparency, as they carry on their activities in the market.

Uduk who was represented by the Zonal Head Lagos Office of the SEC, Mr. Stephen Falomo, described as a welcome development the induction ceremony for the deserving freshly qualified professionals, who have, by their exemplary performance during their Automated Trading System (ATS) training at the Nigerian Stock Exchange, secured their place in the stock broking profession. 

She said “This ceremony marks the final point at which the inductees become fully fledged dealing members of the Nigerian Stock Exchange, a position of great trust; because now you will be handling investments for individual and corporate investors and this you must do with utmost care and highest standards of integrity and ethical practice to forestall any breach of trust.  

“You must also be determined to bring positive changes into the market as you launch your careers and challenge the status quo in the areas of capacity building and innovativeness, while bringing fresh and innovative ideas into product development, as well as efficiency in service delivery to the investors.  

Uduk said the use of ICT has been fully integrated into financial services and as such Financial Technology (Fintech) and Regulatory Technology (Regtech) are trending, having been embraced by both the operators and the investors as ways to further enhance the growth and expansion of business in addition to regulatory and compliance issues. 

She therefore urged the newly inducted members to ensure that they  all get a good grounding on the relevant technological advancement necessary to ensure that they can cope with the pace in today’s market, while staying ahead of perpetrators of cyber crimes, who may attempt to compromise the market. 

“Let me congratulate all inductees here today. Your qualification and admission to practice as members of the Stock Exchange is indeed a great achievement, which will equally be of benefit to the capital market as a whole. I therefore welcome you to the brokerage community on behalf of the Securities and Exchange Commission. 

 “ I wish to also acknowledge the roles of The Chartered Institute of Stockbrokers (CIS) and the Nigerian Stock Exchange (NSE) for their unyielding commitment to ensuring the continued growth of the market by producing young, dynamic and professional stockbrokers, who are admitted as Authorized Dealing Clerks. As you all know, continuous capacity building in our financial market is a very important part of the capital market development”. 

She expressed the hope  that the NSE and the CIS will keep on innovating for the benefit of the market and investors alike, as a means of deepening the capital market and positioning it as a catalyst for economic growth and development of our great nation. 

According to her, “We at the Securities and Exchange Commission, SEC, are conscious of our dual mandates of regulating and developing the Nigerian capital market for the continued and consistent growth of the Nigerian economy, which is why we have been pushing the initiatives which include the E-dividend Management Mandate System, Direct Cash Settlement and Multiple Application Regularization Initiatives, so as to properly educate your clients and increase the level of awareness in our market”.

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