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  • CIS, ASHON renew collaborations on capital market development

    CIS, ASHON renew collaborations on capital market development

    Stockbrokers and securities dealing firms have reiterated their commitment to the development of the Nigerian capital market.

    The leadership of Chartered Institute of Stockbrokers (CIS) and Association of Securities Dealing Houses of Nigeria (ASHON) agreed to strengthen their collaborations. CIS comprises individual securities dealers commonly referred to as stockbrokers while ASHON is the umbrella body for all securities dealing firms in Nigeria.

    In his welcome address during the visit of ASHON leadership, led by its Chairman, Sam Onukwue, to CIS, its President, Oluropo Dada said the two bodies should work together in all areas of professionalism to enhance advocacy and overall market development .

    “Your presence is of particular importance to us because of the long-standing relationship between CIS and ASHON which has fostered naturally over the years. As we all know, CIS is the duly chartered professional body of all individual securities dealers in Nigeria, and, as an institute, we acknowledge the contribution of ASHON to the development of our market as the umbrella body of all the securities dealing firms in the country. So, in essence, we are both part of one family and should be working together for the same mutual interest

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    “We strongly believe that CIS and ASHON should work together in every area that will uplift and further develop our market. Specifically, the two bodies should collaborate to ensure a big and strong market, jointly engage in public advocacies, present joint position papers on issues affecting the capital market to government and its agencies, develop position papers on economic and capital market related issues, organise joint workshops on Economic and Capital market issues amongst others,” Dada said.

    Responding, Onukwue lauded CIS for its initiatives on digitalisation of its operations, including introduction of e-Examinations across the board. 

    He underscored the need to intensify efforts to attract millennials, Gen. Z , Gen Alpha and others in the category as they form the core group of future investors. 

    He lamented the manner at which stockbrokers were being treated on vending agreement during market issues. 

    He said ASHON frowned at the current trend in the recapitalisation of banks whereby some of them have opened portals to attract investors directly bypassing stockbrokers, saying this should be looked into by the two bodies.

    Onukkwe said ASHON aligned with the need to have a joint position with the institute on critical areas of market development.

    According to him, the two bodies should present a joint position to the Capital Market Committee of the Securities and Exchange Commission on market development. He noted that  a joint workshop and seminar by the two bodies was desirable to create awareness on the market and advise the government and market regulators  on the way forward.

    The meeting was attended by the office holders of CIS, Past President of CIS, Olatunde Amolegbe, Past Chairman of ASHON, Chief Onyenechukwu Ezeagu, some council members and other top officials of both bodies.

  • Stockbrokers’ institute renews MoU with UK’s CISI

    Stockbrokers’ institute renews MoU with UK’s CISI

    The Chartered Institute of Stockbrokers (CIS) has updated its agreement with its global strategic partner, the Chartered Institute for Securities & Investment in the United Kingdom (UK).

    At the heart of the Memorandum of Understanding (MoU) signed by CISI and CIS in UK was a commitment to to further strengthen the existing working relationship between the two major professional bodies.

     It will also reinforce collaboration in the areas of  certification,  continuing professional development (CPD), membership drive, integrity and sharing of the benefits of multiple learning opportunities and networking .

     Prior to the signing of the MoU, the President, Chartered Institute of Stockbrokers (CIS), Mr. Oluwole Adeosun, briefed the management of CISI on the historical antecedents that led to the institute’s chartered status and the on-going efforts to expand the scope of the operations in line with its mandate by the Act of Parliament .

    He noted that both CIS and CISI had a lot in common, saying “ the relationship is symbiotic.”

     ”We are thrilled today as it marks another significant milestone in the extensive history of the Chartered Institute of Stockbrokers (CIS). We have officially renewed collaboration with our strategic partner, the Chartered Institute for Securities & Investment (CISI) UK. The partnership has continued to benefit both professional bodies. It aims at advancing capacity building, growing membership and creating seamless learning opportunities for the members of the two major professional institutions,” Adeosun said.

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    Chief Executive Officer, Chartered Institute for Securities & Investment (CISI), Tracy Vegro, also expressed delight at the sustained collaboration of the two professional bodies. 

    Vegro explained that Nigeria was one of the biggest markets to attract young ones to build a career in investment-related areas.

     ”We are delighted to be building our already productive partnership further still. Our role as professional bodies  is to ensure that our members uphold professional standard. This is one way the market can operate efficiently. We are glad to update our collaboration agreement,  aiming to share the benefits of our multiple global learning and networks. The appetite for learning and upgrade of qualifications from the young people in Nigeria is second to none,” Vegro said.

    The CIS’ President was accompanied by Dapo Adekoje, past president of CIS, and Sola Oni, a distinguished member.

    Among the attendees from CISI (UK) were Michael Cole-Fontayn, Chairman of CISI (UK), Kevin Moore, Director of Global Business Development, Helena Wilson, Assistant Director of Global Business Development and Enesha Mahbubani, a member of CISI’s international business team.

  • Jalo-Waziri becomes CIS Fellow

    Jalo-Waziri becomes CIS Fellow

    Managing Director, Central Securities Clearing System (CSCS) Plc, Haruna Jalo-Waziri, has been elevated to a Fellow of Chartered Institute of Stockbrokers by the institute’s Board of Fellows .

    In his welcome address , the President and Chairman of the Institute’s Governing Council, Mr Oluwole Adeosun, who paid glowing tributes to Jalo-Waziri’s professional contributions to market development, explained the modalities for attaining the exalted position of Fellowship.

    “ As an important background , I need to explain that full membership of CIS begins at the Associate Level , while Fellowship is the highest category. To be a Fellow, a member must in addition to professional excellence, pass the moral and integrity tests with flying  colours. Our investee of today (Jalo-Waziri)  has done just that.

     “ Jalo is the Chief Executive Officer of Nigeria’s premier financial market Infrastructure company, the Central Securities Clearing Systems (CSCS) Plc, which provides depository, clearing and settlement of financial assets across multiple Exchanges in the Nigerian Capital Market.

    “ He is a consummate professional with executive experience spanning close to three decades, in Investment Banking, Securities Trading, Pension Funds Administration and conventional Asset Management, Business Development, Capital Trade Point and Capital Market Regulation. He  has also garnered significant Board experience across his career having served and still serving on the Boards of several companies.”, says Adeosun.

    Adeosun stated that stockbrokers had contributed immensely to the growth and development of the economy in general and the capital market in particular saying:

    “The success of the banking sector recapitalization exercise of 2005 -2007, was essentially due to the analytic and marketing formation work, done by Nigerian Stockbrokers. The Equity Market has been a source of sustainable wealth creation for individuals and corporate institutions across the country, consistently outperforming the rest of the economy, while proving to be a reliable hedge against inflation. The work of Chartered stockbrokers has therefore contributed significant key to GDP growth and economic development in Nigeria.

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    Responding to his Investiture, Jalo-Waziri appreciated the Institute for the honour and pledged to uphold its ethics that are rooted in the highest level of professional standard by global metrics.

    “It is a tremendous honor to be recognized by an esteemed institution that aims to uphold the highest standards of excellence and ethics in the Nigerian Capital Market and the

    global financial services industry. I am truly humbled by this distinction and pledge to continue to uphold the principles and values that the institute stands for such as professionalism, integrity, and accountability.

    This honour is not just a personal recognition, but a testament to the collective efforts and support of many individuals and organizations who have been instrumental in my professional journey. I hope I can pay it forward as I enrich and shape the professional trajectory of our successors in the field. “, he said .

    The historic event attracted many of the Institute’s members of the Board of Fellows. chief executive officers of many stockbroking firms and captains of industries and Jalo-Waziri’s wife Maimuna.

  • CIS inaugurates northern zone

    CIS inaugurates northern zone

    Chartered Institute of Stockbrokers (CIS) has inaugurated its Federal Capital Territory (FCT) and Northern District Zone Society as to strengthen its activities across the entire country.

    The Institute’s President, Mr Oluwole Adeosun explained that the inauguration in Abuja at the weekend, the first in the series was to meet the yearning demand for the Institute’s advocacy , investor literacy and media engagement among other from the investing public across diverse groups.

    “ District societies play a pivotal role in fostering a sense of community, collaboration, and knowledge-sharing among members. Embracing these societies ensures that we as professionals , are well-connected, informed, and equipped to navigate the dynamic landscape of our industry.

    The objectives are to co-ordinate and identify as a unit of the Institute within the defined geographical location, ensure high standards of professional and ethical conduct among members, coordinate and embark on advocacy visits, investor literacy and sensitization programmes and media engagements within its designated jurisdiction, organize general academic support to registered students of the Institute within its jurisdiction and assist in mobilizing new members in the areas of coverage,”, says the Institute’s President, Oluwole Adeosun.

    In his response, the Chairman, FTC and Northern Zone District Society, Mr Sehinde Adenagbe, appreciated the historic inauguration and  assured the Institute that his members were poised to supporting the Institute’s membership drive and financial literacy through comprehensive awareness creation.

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    “ We want to assure the President that we shall always take cognisance of our fiducial responsibilities as Stockbrokers in all our dealings with people and organisations.  Our ethical commitment will be held in high esteem at all times and our word will be our bond. We shall further advertise the Institute in this region, strive to educate and draw more people into our noble profession of Stockbroking in order to expand the demography of capital market participants.

    “ We shall display our capacity to assist the Government in raising capital that will transform the nation and boost Infrastructural development without resolving to borrowing.  We shall continue to practice  with strict adherence to rules and regulations, displaying practical integrity and trust embedded with discipline, transparency and confidence. In order to function maximally, however, we need the cooperation and support of our parent body in the areas of funding, educationalmaterials and other necessary timely information that may assist us.”, said Adenagbe.

  • Grange School, CIS win Zenith Bank/Ikoyi Club swimming gala

    Grange School and Children International School have emerged champions in the Secondary and Primary School categories of the 4th Zenith Bank/Ikoyi Club Inter School Swimming Gala held Saturday at the elite Ikoyi Club, Lagos.

    Grange amassed nine gold, six eight silver and nine bronze medals to edge Edgewood School to second place on seven gold, one silver and three bronze medals while CIS came third with five gold, four silver and three bronze medals.

    Unlike the previous editions where the categories were held separately, a jam-packed Ikoyi Club with about 300 parents cheering their kids, the Primary School Category was fiercely contested with CIS taking just a shade to beat Saint Saviour’s School, Ikoyi to the title.

    CIS bagged nine gold, six silver and three bronze medals for the podium’s peak with Saint Saviour’s placing second with eight gold, nineteen silver and nine bronze medals leaving Grange with a consolatory third with five gold, four silver and seven bronze medals.

    Morinsola Idowu of Lagos Preparatory School was named the MVP for female for the primary category while Abduljabbar Adana of Corona School, for the third straight year, won the male version.

  • CIS moves to attract young professionals

    The Chartered Institute of Stockbrokers (CIS) has taken some strategic initiatives to attract students of higher institutions to the securities and investment profession in Nigeria.

    The institute has also urged stockbrokers to deploy their diversified talents to boost its activities for enhanced global competitiveness.

    Addressing stockbrokers at the Institute’s 26th annual general meeting in Lagos, President, Chartered Institute of Stockbrokers (CIS), Mr Adedapo Adekoje explained that the CIS had taken some strategic decisions to boost investor education, especially, among the students in the higher institutions.

    According to him, today’s youths are the future investors and should be exposed to the culture of savings and investment He noted that activities such as career talks, debate competition, use of promotional videos organising weekend revision classes and provision of study packs to assist them in preparation for examination.

    The institute implemented some key strategic initiatives to attract students of Nigerian higher institutions to the securities and investment profession during the year. Career talks were delivered in several universities including Obafemi Awolowo University, Ile Ife, Augustine University, Covenant University, University of Lagos, Kogi State University, University of Abuja, University of Nigeria, Nsukka and Nasarawa State University, Keffi to sensitize students to opportunities in the profession.

    In addition, a test run of the CIS Inter-Tertiary Institutions Debate Competition was held at Obafemi Awolowo University. It recorded immense acceptance and success. The institute also organized a one-day students’ forum in Lagos with the objective of creating a platform for interaction between the Institute, examiners, tuition providers and students, and provide an avenue for exchange of ideas for the advancement of the Institute.

    Adekoje also explained that a temporary special window had been created for experienced academics, holders of CFA and CIIA qualifications and senior executives of regulatory agencies in the financial sector, including the Securities and Exchange Commission (SEC), the Central Bank of Nigeria (CBN), The Nigerian Stock Exchange, Assets Management Corporation of Nigeria (AMCON) and the National Pension Commission among others.

    According to him, the institute has secured direct membership status of the Chartered Institute of Securities and Investment, United Kingdom for stockbrokers in order to expand their professional horizon in the global capital market.

    He urged stockbrokers to deploy their talents to support the Institute in its efforts to implement an array of strategic plans to move the market to the next level.

    Stockbrokers commended the institute for its landmark achievements and approved all the motions, including amendments to the requirements for aspiring to become President and Vice President.

     

  • Capital market… ’capital’ penalty

    Capital market… ’capital’ penalty

    Last week’s indictment and expulsion of Managing Director of Partnership Investment Company Plc and Partnership Securities Limited, Mr Victor Ogiemwonyi, has opened up the capital market to public scrutiny, writes Capital Market Editor Taofik Salako.

    Suave, knowledgeable and amiable, Victor Ogiemwonyi was unmistakably one of the leading lights of the capital market. His knowledge about the capital market is vast and he rises almost spontaneously to defend the market interest.

    A fellow and former council member of the Chartered Institute of Stockbrokers (CIS), former council member of the Nigerian Stock Exchange (NSE), former president of the Association of Issuing Houses of Nigeria (AIHN), member of the Capital Market Masterplan Implementation Committee and member of the board of the NASD Plc among others, Ogiemwonyi was one of the leaders of the market during his time. His company-Partnership Investment Company Plc was one of the few stockbroking-originated investment companies that were listed on the NASD Plc-the alternative over-the-counter (OTC) securities exchange for listing of public limited liability companies that are not listed on the NSE. All these came crashing last week with the announcement of his indictment by the Administrative Proceedings Committee (APC) – the adjudicatory arm of the Securities and Exchange Commission (SEC).

     

    Long-awaited rulings

     

    After more than a year of wide-ranging investigation, SEC last week indicted Ogiemwonyi, banning him from engaging in capital market activities and from holding directorship position in any public company in Nigeria. SEC also withdrew the operating licenses of his companies. The commission also suspended the chairman of the companies, Mr. Henry Omoragbon, from engaging in capital market activities in Nigeria for five years.

    Ogiemwonyi and his companies allegedly engaged in unauthorised sale of clients’ shares, failure and refusal to resolve clients’ complaints, performance of a capital market function without registration, non-compliance with the Code of Corporate Governance of the commission, filing of false and misleading information and non-compliance with the commission’s rules relating to assets-mix ratio.

    They were also accused of non-compliance with the commission’s rules on disclosure of transactions valued at N50 million and above executed in a single day, soliciting deposits from the public and other violations of the Investments and Securities Act, 2007, SEC Rules and Regulations, the Code of Conduct for Capital Market Operators and their Employees and Code of Corporate Governance for Public Companies.

    Ogiemwonyi was also ordered to pay a penalty of N100, 000 for breach of Rule 1(iii) of the Code of Conduct for Capital Market Operators and their Employees as contained in the SEC Rules and Regulations made pursuant to the Investments and Securities Act 2007. Omoragbon was also ordered to pay a penalty of N100, 000 for breach of Rule 1(iii) of the Code of Conduct for Capital Market Operators and their Employees as contained in the SEC Rules and Regulations made pursuant to the Investments and Securities Act 2007.

    Some Directors of the company, Mr. Ojetunde Taiwo, Mrs. Ogiemwonyi Olufunke, Mr. Ogiamien Frank, Mr. Adeusi Aladejola Alexander and Mrs Arese Ugwu, were also suspended for five years from engaging in capital market activities. They were also banned from holding directorship positions in any public company in Nigeria for the period of five years and were ordered to pay a penalty of N100, 000 each for breach of Rule 1(iii) of the Code of Conduct for Capital Market Operators and their Employees as contained in the SEC Rules and Regulations made pursuant to the Investments and Securities Act 2007.

    Also, Mr. Eseha Augustine Enejeta, a manager in the company, was suspended for a period of one year from engaging in capital market activities. He was also ordered to pay a penalty of N100, 000 for breach of Rule 1(iii) of the Code of Conduct for Capital Market Operators and their Employees as contained in the SEC Rules and Regulations made pursuant to the Investments and Securities Act 2007.

    The commission also ordered Partnership Securities to restore to Mr Cletus Mbaji Uchendu 48,200 shares of Forte Oil Plc, which were allegedly sold without the client’s authority. The order for restoration also included all accrued benefits to the client such as bonuses and dividends from May 23, 1997 to date.

     

    Road to infamy

     

    The composition of the APC was sequel to several complaints filed by investors against Ogiemwonyi and his companies. Some 300 investors alleged that they were swindled of more than N4.8 billion in investment schemes promoted by Partnership Securities Limited (PSL). Representatives of the investors alleged that they were approached by Ogiemwonyi to surrender their shares to him for management under his Partnership Securities Deposit Account (PSDA) with a promise to provide a guaranteed return periodically. Shares worth more than N4.8 billion were misappropriated through this scheme.

    SEC and NSE in the last quarter of 2016 conducted joint investigations into the activities of PSL. Preliminary investigations by the capital market regulators said the authorities had established a case of illegal activities against Partnership Securities as the operation of the scheme and guaranteed returns ran contrary to the mandate of the securities firm. Guaranteed investment scheme is prohibited by the Rules of the Exchange, and violation under this rule may fall under engaging in illegal activities and transactions. Such violations carry wide-ranging fines and sanctions under the rules of the market, including monetary sanction, revocation of dealership license and cancellation of stockbroking license.

    One of the highpoints of the cases involved the former chief executive of Ecobank Transnational Incorporated (ETI) Plc, Mr Arnold Ekpe, an ally and client of Ogiemwonyi. Ekpe mandated his stockbroking firm, Partnership Securities Limited, to sell his 96.08 million ordinary shares of ETI. Ogiemwonyi allegedly sold the shares but only remitted N300 million of the total proceeds of N1.54 billion to Ekpe. Ekpe, in a complaint lodged at the Exchange dated October 16, 2016, alleged that PSL misappropriated N1.237 billion being part of the proceeds of sale of Ekpe’s 96.08 million shares of Ecobank Transnational Incorporated Plc and dividends of $80,000. Ekpe also alleged that although he completed a form indicating that the proceeds of the share sales should be paid into his bank account under the Direct Cash Settlement system, PSL elected to pay the proceeds into its own account and misappropriated the funds.

    The Exchange on October 18, last year suspended PSL from trading on all its floors nationwide. The Exchange also on October 19, last year informed SEC of the complaint and requested for a joint examination of PSL and its associated companies. SEC as early as first quarter of 2016 started conducting silent investigation on PSL. SEC already saw a clear-cut case against Ogiemwonyi. In a February 2016 letter, SEC noted that available documents indicted PSL and that the broker-dealer was liable and would be held responsible for the defalcation of illegal conversion of sales’ proceeds.

    The Ekpe case against Ogiemwonyi appeared iron cast and he allegedly admitted culpability. “Further to our mandate to sell your 96,077,872 shares of Ecobank Transnational Incorporated at the fixed price of N16 per share, we confirm that the shares were sold by us for a total of N1.537 billion out of which N300, 000,000 has been paid to you. We confirm that outstanding proceeds from the sale have been misappropriated by us and we undertake to meet the obligation of N1.237 billion and $80, 000,”   Ogiemwonyi stated in one of the documents tendered.

    SEC took advantage of the existing agreements between the capital market regulators and the Economic and Financial Crimes Commission (EFCC) to lodge a direct complaint with the anti-corruption agency. EFCC conducted preliminary investigation and arraigned Ogiemwonyi before the High Court of Lagos for sundry offences, including stealing and dishonest conversion of proceeds of share sale. Ogiemwonyi was ordered remanded in Ikoyi prisons.

    The Ekpe case appeared to blow the lid off the can of iniquities at Ogiemwonyi’s companies. Other investors appeared with allegations of fraud and mismanagement. Some of the other victims included Mr.  Godwin  Anono,   Chairman, Standard  Shareholders Association of Nigeria, who claimed N160  million worth of shares,  Mr. Alabi Olusola  with over N12.540 million worth of shares and Mr. Solesi Samuel with over N40 million worth of shares among others.

    Olusola said Ogiemwonyi called him to deposit his shares, which had not been traded over the years, in the custody of his stockbroking firm to manage those shares and generate 10 per cent returns, which would be paid to Alabi twice a year.

    “When I look at the proposal, it was reasonable and the man involved is a prominent council member of the NSE. I trusted him.  I did not enter the deal with an unregistered operator and it was not that he offered me a fantastic return, but a reasonable return.  The deal was such that I can back out at any time I wish. When in 2014 the returns were not forth coming, Ogiemwonyi started giving one excuse or the other; that the returns are being reinvested; it was then I realised that he was playing foul, hence  I demanded for my shares which could not be returned to me,” Alabi said.

    After excruciating investigation, the Head of Enforcement Department at SEC lodged complaint at the APC, which invited all respondents to submit their claims. In the matter, the respondents included Partnership Investment Company, 1st respondent; Partnership Securities Limited, 2nd respondent; Mr. Henry Omoragbon, 3rd respondent; Mr. Victor Ogiemwonyi, 4th respondent; Mr. Allan Omorogba, 5th respondent; Mr. Ojetunde Taiwo, 6th respondent; Mrs. Ogiemwonyi Olufunke, 7th respondent; Mr. Ogiamien Frank, 8th respondent; Mr. Adeusi Aladejola Alexander, 9th respondent; Mr. Eseha Augustine Enejeta, 10th respondent; Mr. Odihi-Ogiemien Frank, 11th respondent; Dr. Bello Aliyu Gusau, 12th respondent; Mr. Olafisika Akinkugbe, 13th respondent; Mrs Arese Ugwu, 14th respondent; Mrs. Yinka Omoragbe, 15th respondent; Mr. Justus Olu Paul, 16th respondent; Mr. Clem Baiye, 17th respondent and Mr. S.C. Irune, 18th respondent. The APC concluded that “by their actions and or omissions the 1st, 2nd, 3rd, 4th, 6th, 7th, 8th, 9th, 10th, 11th, and 14th respondents engaged in acts capable of adversely affecting the investing public’s image of, and confidence in the capital market”.

     

    No sacred cow

     

    The latest indictments reechoed the tough stance of capital market regulators on fraudulent practices, especially unauthorised sale of client’s shares and misappropriation of client’s funds. SEC and the NSE as well as the CIS have been combative when it comes to infringement on market integrity. With some N13 trillion equities listed on the NSE and the almost limitless capacity of the primary market to raise funds, the market thrives on integrity and all stakeholders are usually unanimous on this. So, when the hammer falls, there is usually no comradeship and sacred cow. In another high-profile case, SEC had earlier this year banned ebullient investment banker, Mr. Albert Okumagba and Mr. Chibundu Edozie and their companies, BGL Assets Management Limited and BGL Securities Limited from ever participating in the capital market. Okumagba and Edozie were also banned for life from holding office in any public company in Nigeria. Okumagba was also a force to reckon with in the capital market, having served at the top echelon of the organs including as president of the CIS.

    Okumagba’s case was however quite different, because it involved no unauthorised sale or diversion of client’s funds but rested on equally dangerous terrain of asset management. Even though a client or an investor can willingly sign on to an investment management agreement, the onus rests on the capital market operator to ensure that the investment agreement is in line with capital market rules and the operator’s registered function. That was the Achilles heel of BGL-one of Nigeria’s most robust investment banking firms.

    SEC had received 32 complaints between 2012 and 2015 against the BGL companies over certain conducts in relation to operations of their Guaranteed Consolidated Notes (GCN) and Guaranteed Premium Notes (GPN).

    SEC had, through the EFCC, pursued and secured conviction of a stockbroker and former managing director of First Alstate Securities Limited, Mr Tajudeen Folaji, who was sentenced to seven years imprisonment by the Lagos State High Court over fraudulent sale of his client’s shares. The Lagos State High Court presided over by Justice Kudirat Jose found Folaji guilty of unauthorised sale of shares and stealing for fraudulently converting 31,886,200 shares of IPWA Plc  valued at N331.3 million belonging to an investor on April 3, 2008. The court also has imposed a N20 million fine on First Alstate Securities Limited where he was the managing director and dealing clerk. Besides, the court directed the EFCC to trace and liquidate properties belonging to the convict to restitute the investor.

    The NSE has this year expelled not less than 88 stockbroking.  The expulsion also implies that the expelled firms will not be able to act as stockbroking agent in other countries that have Memorandum of Understanding (MoU) with Nigerian capital market authorities.  Nigerian capital market has standing bilateral agreements with several other jurisdictions including Morocco, Angola, China, Ghana, Kenya, Malaysia, Mauritius, South Africa, Tanzania and Uganda.

    President, Association of Issuing Houses of Nigeria (AIHN), Mr. Sonnie Ayere has called for a pragmatic approach to address the problem of illiquidity by reviewing the practice rules and scope of operations of stockbroking firms to make them more viable and profitable.

    Ayere, who is also Managing Director of Dunn Loren Merrifield Group, cited the example of Malaysia that reformed the stockbroking ecosystem with the introduction of universal brokers, which were allowed to access the interbank market to undertake borrowing or lending of funds.

    Many stockbroking firms and stockbrokers have been found to be carrying out transactions at the equities market without adequate funding of their accounts, thus exacerbating settlement risks at the market.

     

    A pact for investor’s protection

     

    While few untoward cases like Ogiemwonyi’s highlighted market risks, a cursory review undoubtedly shows that the Nigerian capital market has comprehensive internal and external frameworks to safeguard investors and market integrity. While subsisting MoUs with not less than 10 other countries grant Nigerian capital market regulator international leverage to checkmate domestic illegalities, SEC and NSE have subsisting cooperation agreement with the EFCC that enables the capital market regulators to pursue further enforcement of regulatory actions. While the ISA empowered SEC protect investors, it has limitations over criminal cases. The agreement with the EFCC covers the loopholes.

    Director General, Securities and Exchange Commission (SEC), Mr. Mounir Gwarzo, said key initiatives such as recapitalization of operators, direct cash settlement, e-dividend, national investors protection fund (NIPF), and code of corporate governance among others would help to strengthen investor’s protection and block loopholes.

    Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr Oscar Onyema, said authorities at the Exchange have implemented far-reaching transformational programmes that have improved market access and provided products that are aligned to investors’ requirements. He added that the introduction of several transparency initiatives such as BrokerTrax, X-Compliance, X-Whistle, Compliance Status Indicator symbols, X-Issuer and X- Alert among others have brought significant sanity to the market place and provided for a fair and orderly market.

    Managing Director, Solid-Rock Securities and Investment Plc and President of the Association of Stockbroking Houses of Nigeria (ASHON), Mr. Patrick Ezeagu told The Nation that the involvement of some capital operators in illegal activities was an exception rather than the norm.

    “In any association or group, there is bound to be few bad eggs and the actions or activities of these few do not criminalise the entire members. We have, in conjunction with the regulators, put in place a robust compliant management framework to ensure the quick resolution of complaints in the market. We have zero tolerance to infractions and if you check very well, you will see that the rate of infraction is probably the lowest in the capital market. There are many structures put in place to safeguard investors and their investments,” Ezeagu said.

    President, Chartered Institute of Stockbrokers (CIS), Mr Oluwaseyi Abe said investor protection would always remain a topmost priority for the regulators and operators in the capital market. He said the CIS would continue to collaborate with the regulators to ensure that stockbrokers keep to the dictum: “My word is my bond”.

  • Nigerian, UK stockbrokers’ institutes to collaborate on capacity development

    The Chartered Institute of Stockbrokers (CIS) has signed a Memorandum of Understanding (MoU) with its counterpart in the United Kingdom, the Chartered Institute for Securities and Investment (CISI) to develop mutual framework for capacity development.

    By the MoU, the CIS shall mobilise its members under special arrangement to become CISI members with attendant benefits and CISI will also do the same. The CIS will also collaborate with CISI to organise and execute on-line continuing development programme (CPD) for its members in Nigeria and both parties shall develop specialised professional training for their members.

    Also, CIS shall collaborate with its UK counterpart to develop specialised professional training for its members and students resident in Nigeria through development of courses and programmes in Securities and Investment and other related subjects.

    The MoU provides for collaboration of both Institutes to develop a course on integrity, ethics and professionalism as part of on-going requirements for the membership of CIS among others.

    The MoU represents a strategic move to forge a strong relationship between the two leading institutions that train global finance and investment professionals and it is expected to become operational shortly.

    Also, plan is underway to hold a strategic forum where the chief executive officers (CEOs) of stockbroking companies in Nigeria and members of CISI in London and Nigeria would interact for mutual benefits.

    Acting President, CIS, Mr Oluwaseyi Abe, described it as a welcome development that would be mutually beneficial to both institutes.

    Abe noted the support of the Nigerian Stock Exchange’s chief executive officer, Mr Oscar Onyema who had earlier stated the Exchange’s full support for the MoU as a potent method to create symbiotic relationship between CIS and CISI in order to develop the much needed global manpower for the Nigeria capital market.

    Director, Global Business Development, Chartered Institute for Securities and Investment (CISI), Mr Kevin Moore expressed optimism that the MoU would strengthen relationship between CISI and CIS in all the components of professional and business activities in the short, medium and long time.

    According to him, members can specialize in any aspect of the financial market operations and get certification such as a specialist in equity, fixed income and derivatives among others. He explained that each certification requires an examination.

    Moore endorsed the plan to organize a strategic forum for exchange of ideas by the CEOs of stockbroking firms in Nigeria and global members of CISI.

    The Country Senior Representative of CISI, Dr John Osuoha who congratulated CIS and CISI on the milestone explained that membership of CISI basically provides global recognition for the professionals in the financial market.

    Dr Osuoha explained that over 200 Nigerians had already become members of CISI either by direct membership or examination approach. He noted that both CIS and CISI would collaborate in conducting examinations for the members of CISI who aspire to specialize in professional practice.

     

  • Stockbrokers urge investors to take advantage of low prices

    •Commend Okumagba’s leadership

    Investors should see the current downtrend at the stock market as enticing opportunity to buy into good stocks and take future positions in companies with prospects for good returns.

    In a review of the market situation, a cross-section of stockbrokers said investors should not panic about the market situation.

    They urged investors to leverage on the expertise of stockbrokers to make investment decision that would minimize their risk and maximize return.

    Managing director, Finawell Capital Limited, Mr. Tunde Oyekunle, said that investors should come to the market to take their position.

    He stressed the need to imbibe the consciousness of making wise investment decisions by buying attractive stocks at low prices.

    Chief executive officer, Standard Union Securities Limited, Mr. Sehinde Adenagbe urged investors not to panic but rather move closer to stockbrokers for advice on investment opportunities in the capital market, which is a source of medium and long term investment.

    Meanwhile, the stockbrokers have commended the leadership of Mr. Albert Okumagba. Okumagba was appointed mid last year as president of the Chartered Institute of Stockbrokers (CIS).

    Managing Director, Express Discount Asset Management Limited, Alhaji Atiku Kafaru described Okumagba as round peg in round hole.

    According to him, the institute has recorded laudable achievements within the short period that the new administration came on board.

    “The current leadership of the institute has raised the bar in the area of visibility. Members are more interested in the institute’s activities. Membership has increased. The current leadership has a target of about one million members for 2015 through the Diploma Programme and this is achievable. As a prelude, the new leadership has signed Memorandum of Understanding (MOU) with some tested institutions in order to realize the target for increase in membership base. A lot of sensitization programme is going on in this regard,” Atiku said.

    Oyekunle attributed the impressive performance of the new leadership to factors such as vibrancy, innovativeness, market experience and the strong determination to move the market to the next level. “This is not only being communicated through effective communication strategy but quite visible,” Oyekunle said

    Adenagbe said the current leadership leverages on wide contacts to boost the operation of the institute. “The current leadership draws more members to the fold. Members that are not very active on the institute’s activities are now brought on board as every member is seeing the institute on a close range. It is dear that the current leadership is building a world class institute,” Adenagbe said.

    Chief executive officer, Halicorn Consulting Limited, Mr. Segun Oye noted that the institute is making efforts to encourage members in spite of the challenges in the market.

    “Efforts such as negotiating dues, discounting trainings and sustained dialogues are part of the efforts being made to encourage members,” Oye said.

    Oyekunle described the recent stockbrokers’ conference as one of the best ever in the history of the institute in both the form and content.

    He however urged the leadership to get closer to the members to understand their plights and give them value.

    Atiku said the institute should endeavour to partner with the government functionaries to drive revenue that would enhance business opportunities for members.

  • Stockbrokers parley SEC, NSE on recapitalisation, others

    Stockbrokers parley SEC, NSE on recapitalisation, others

    Stockbrokers are currently discussing with the authorities at the Securities and Exchange Commission (SEC) and Nigerian Stock Exchange (NSE) on key market issues with a view to ensuring that the market operators and regulators reach workable modalities for implementation of the policies.

    President, Chartered Institute of Stockbrokers (CIS), Mr. Albert Okumagba, who disclosed this, said the self-regulatory organisation (SRO) for the largest group of market operators has been engaging the market regulators on the crucial issues of recapitalisation, demutualisation, new listing and activation of the commodities exchange.

    The issue of conversion of the NSE from a member-owned Exchange to shareholder-owned tradable public limited liability company, otherwise known as demutualisation, has been on the front burner.

    Okumagba said consultations were going on with the market regulators on the issues of recapitalization, demutualization of the NSE, making commodities exchange active and how to attract the companies in the telecommunication sector to get their shares listed on the market.

    He added that the CIS would monitor mutual funds in order to protect investors who do not have professional advisers as well as ensure active trading on the mutual funds.

    He said the CIS plans to sign a Memorandum of Understanding with the Institute of Chartered Accountants of Nigeria (ICAN) and the Nigerian Bar Association (NBA), Federal Ministry of Agriculture to further expand growth in the capital market.

    While noting that the CIS was poised to grow the capital market to an appreciable level as a professional institute of choice from the money-making perspective, Okumagba stressed the need for all efforts to be geared towards developing the capital market and the economy at large.

    The CIS, he reiterated has extended hand of fellowship to ICAN, NBA to collaborate based on mutually agreed principles.

    The CIS boss also said the institute was holding talks with the market regulators regarding the recapitalisation of market operators and demutualisation of the NSE.

    He added that consultations were ongoing about how to make the commodities exchange active and attract companies in the telecommunications sector to the market.

    While stressing the need for more active trading in collective investment schemes, he assured that the institute would monitor the schemes in order to protect investors who do not have professional advisers.