Tag: protection

  • Investors’ Protection Fund to pay N42.2m compensation to 158 investors

    The Investors’ Protection Fund (IPF) of the Nigerian Stock Exchange (NSE) is set to pay about N42.23 million as compensation to 158 investors that had suffered pecuniary losses from infractions by stockbroking firms.

    The IPF is a statutory fund established pursuant to Part XIV, Section 197 of the Investment and Securities Act 2007 (ISA) to compensate investors who suffer pecuniary loss arising from the revocation or cancellation of the registration of a dealing member firm by the Securities and Exchange Commission (SEC), insolvency and bankruptcy or negligence of a dealing member firm of the Exchange.

    The IPF also compensates for defalcation committed by a dealing member firm or any of its directors, officers, employees or representatives in relation to securities, money or any property entrusted to, or received or deemed received by the dealing member firm in the course of its business as a dealing member firm.

    The board of the IPF yesterday stated that a total of 158 claimants for pecuniary losses suffered by them as a result of wrong doing by certain dealing member firms of the Exchange.

    According to the IPF, the 158 claimants due to be compensated are investors whose claims were verified by the Exchange, approved by the board of trustees of the IPF, and whose identities were verified by an identity verification consultant engaged by the IPF.

    The 158 investors would shares N42.23 million, with the maximum compensation capped at N400,000 in line with the approved rules of the IPF.

    “These 158 investors are being compensated for defalcation committed by 29 dealing member firms of the Exchange who are either inactive or have been expelled as members of the Exchange,” the IPF stated.

    The claimants had been screened and found to be eligible for compensation in accordance with the relevant provisions of the ISA and the IPF rules. The IPF will advise all 158 claimants about the processes to receive their compensation payments.

    Vice chairperson, board of trustees, Investors’ Protection Fund (IPF), Mr. Fubara Anga, said the fund had gone through a long, rigorous and transparent process and had worked in line with global best practices in reaching decisions on various issues regarding the IPF.

    “First of all, we put in place an appropriate corporate governance structure for the Fund; we adopted Rules for the IPF and then following transparent and auditable selection processes, we appointed auditors as well as identity verification consultants. We then commenced the process of identifying claimants and verifying their claims. We must thank the claimants for their patience,” Anga explained.

    Chief executive officer, Nigerian Stock Exchange (NSE), Mr. Oscar Onyema, who is also a trustee of the IPF, described the maiden payment as a milestone pointing out that the payment affirmed commitment to the continuous development of initiatives that will bolster confidence in the capital market.

  • OPC’s pipelines protection ‘contract’ lapses

    OPC’s pipelines protection ‘contract’ lapses

    The Oodua Peoples Congress (OPC)’s ‘contract’ to protect petroleum pipelines in the Southwest has lapsed.

    A text message from the Nigerian National Petroleum Corporation (NNPC) to OPC leaders informed them of the end, on June 15, of the N9 billion contract awarded in March by the Goodluck Jonathan administration.

    The timing of the contract was condemned by Nigerians because it was considered a tool to achieve cheap political points by the then Peoples Democratic Party (PDP)-led government.

    But former Minister of Petroleum Resources Mrs. Diezani Alison-Madueke justified it by saying Nigeria loses about $5 billion yearly to pipeline vandalism.

    Yesterday, a source at the Petroleum Ministry said the NNPC did not withdraw the multi-billion naira contract given to the OPC.

    The source noted that the contract was a three-month deal, which ended by midnight yesterday.

    “Unfortunately, the tenure of the government that awarded the contract has ended and nobody knows if the new administration would renew it.

    “According to the source, the contract was awarded to OPC as had been done to such groups in the Niger Delta.

    “The Federal Government gave militia groups contracts to protect the pipelines alongside the police and other security agencies.

    “The renewal of such contract hinges on performance.

    “By midnight yesterday, the contract would have elapsed. It is a three-month contract. It was awarded in March.

    “The Federal Government’s intention was that the OPC working with the police and other security agencies would reduce pipeline vandalism.

    “Pipeline monitoring and protection contracts have been awarded to other groups in the Niger Delta, so the government decided to give the OPC  the contract to protect the pipelines in the Southwest, especially the Lagos, Arepo and Mosimi stretch.

    “It is not NNPC that cancelled the contract, it just elapsed.

    “It is still possible that the contract may be renewed but the concern is that nobody knows what the new administration will do.

    “Besides, the major concern is that the contract has not been paid for. Even if it will not be renewed, nobody knows whether the job already done will be paid for.

    “Also the board of the NNPC didn’t approve the contract initially, thus compounding the challenges in the contract.”

     

  • Edo pleads for schools protection

    The Edo State government has appealed to community leaders in the state to protect public schools in their domains.

    Commissioner for Higher Education, Mr. Washington Osifo  made the appeal in an interview with reporters in Benin City, Edo State capital.

    He said government-owned schools in the state were constantly being vandalised by hoodlums.

    He said it is part of the civic responsibilities of the community leaders as well as other residents of the state to assist government in protecting schools.

    “Vandalism is part of the evil in the heart of men. We don’t understand why someone will destroy government property, especially government schools. We have spoken to residents, religious and community leaders where these schools are located, to see government schools as their own and protect them.

    “We have continued to urge community leaders to assist us in taking care of these properties. We hope that they will listen to this clarion call,” he said.

    Osifo said the employment of security men to protect schools in the state would swell the wage bill of the state government.

    He said: “The security men we have in some schools cannot really do much when these hoodlums invade the schools because they find it difficult to overpower the vandals.

    “Most times the hoodlums tie and beat them up before vandalising the schools property or stealing them.

    “We are appealing to good-spirited people in the localities to protect the schools because their children are the direct beneficiaries. They should not turn their eyes to the other side and allow people to destroy government properties in their area.

    “We have complained to the police on several occasions and we are still looking for the perpetrators; nobody has a clue as to who is doing it and why.”

    He said principals of government schools have been mandated to stay close to the school premises and do routine checks on schools, especially during weekends.

  • ‘How media can boost rights protection’

    ‘How media can boost rights protection’

    Lawyers and journalists have examined the state of human rights administration. They set agenda for the government and the media on ways to ensure effective rights protection. ERIC IKHILAE reports

    How can human rights be better protected in Nigeria? This was the question media and legal experts sought to answer at a forum organised by the National Association of judiciary Correspondents (NAJUC), Abuja chapter.

    It had the theme: The role of the media in promoting human rights.

    Speakers assessed the human rights performance of successive administrations and suggested ways the media could boost human rights protection.

    Speakers, including Prof Dakas C. J. Dakas (SAN) of the University of Jos, Tobi Soniyi of ThisDay newspapers and Reuben Buhari of the Leadership newspapers said unlike what existed during the military era, there is improvement in the observance and promotion of human rights under the current administration.

    They were also of the view that despite the achievements so far, there was need for improvement both on the side of the government, its agencies and the media, in constantly keeping them (government and its agencies) on their toes.

    They urged the media see the Freedom of Information (FOI) Act a ready tool to be deploy to seek openness on government and demand protection for the rights of the people. They urged the media engage in continuous training to keep abreast of current development and know when to raise questions and demand actions.

    They argued that although the right to freedom of expression was a universally acknowledge and respected right, the media should exercise such right responsibly and refrain from inaccurate, irresponsible reportage capable of inflaming the society.

    Dakas, who gave the keynote address suggested efforts must now be directed at the ensuring the realisation of what are now classified as the second and third generations of rights as against the much emphasised first generation of rights, which are basically civil and political rights, provided for in Chapter Four of the Constitution.

    “The rights to life, the right to personal liberty, the right to human dignity, the right to freedom of expression and the press, the right to freedom of religion, among others. These are basic fundamental rights that are civil and political in nature that you find encapsulated in Chapter four of the Nigerian Constitution.

    “There is also a second generation of rights, which are essentially economic, social and cultural in nature. They include the right to food, the right to education, the right to health, the right to housing, among others. These rights that are economic, social and cultural in nature are not expressly provided for in the Nigerian Constitution in the sense in which a deprived citizen can seek redress in court.

    “At best, what you have in the Constitution are the “fundamental objectives and directive principles of state policy,” contained in Chapter two of the Constitution, which the Constitution itself, makes non-justiciable.

    “There is also the third generation of human rights, which are essentially the solidarity rights. They include the right to safe and clean environment, the right to international peace and security, among others.

    Dakas noted that while the existing legal regime guarantees the civil and political rights, as provided in Chapter Four of the Constitution, it made a halfhearted effort at addressing the economic, social and cultural rights in Chapter two, which it made non-justiciable.

    He argued that the huddle created by the non-justiciability of Chapter Two can now be sidestepped with the activation of the African Chatter on Human and People’s Rights (ACHPR), which the country has domesticated.

    Dakas further argued that with the domestication of ACHPR, Nigerians can now to go to court to activate the judicial process on the basis of violation of the provisions of the ACHPR, which encapsulates all the generations of human rights and makes them justiciable.

    “So, even for those, who argue that because Chapter Two of the Nigerian Constitution is not justiciable, but simply provides for fundamental objectives and directive principles of state policy, they need to acknowledge that the ACHPR is now part of Nigerian law. And by reason of the domestication of the ACHPR, it is possible to go to court and activate the judicial process in order to ensure the enforcement of the rights provided for in the ACHPR, including those rights that are economic, social and cultural in nature,” he said.

    Dakas noted that as against past experience, particularly during the military era, efforts are being made to protect the rights of the citizens under the current administration.

    Dakas pointed at the plausible roles played in recent time by the National Human Rights Commission (NHRC) . He said although the commission was created under the military, with limited powers, the recent amendment to its establishment Act has provided a framework for the commission to have a robust engagement with the subject of human rights.

    The Law Professor, who noted that there are positive developments that are ongoing, in terms of the works the NHRC has done and is still doing in the area of rights protection and enforcement, also noted that with the recent amendment to its Act, the commission can issue an order that has the force of a High Court order.

    He commended the government for the passage of the Freedom of Information Act, which was rejected by the Obasanjo administration. He highlighted the benefits of the Act and argued that the people can leverage on the opportunity presented by the Act to lift the veil of secrecy that often pervades the conduct of government affairs, and demand that government businesses are conducted in manners that are credible.

    He observed that the people, particularly journalists are not leveraging as much as they should on the FOI Act. “As journalists, if you leverage on the FOI Act, you will find that you will be impacting greatly in the fight against corruption, economic and financial crimes in the country.”

    Despite the noted achievements, the lecturer identified existing challenges, which he said must be addressed. They include the for the military and intelligence agencies involved in the current efforts against the insurgents to ensure that they conduct counter-terrorism in a manner that is human rights compliant.

    “It is in the interest of the security and intelligence community to ensure that counter terrorism administration reckons with the reality of human rights and mainstream human rights into counter terrorism administration.  Otherwise, you will find that they leave themselves vulnerable to prosecution by Nigerian authorities, and where the Nigerian authorities are unwilling, they will be prosecuted by the International Criminal Court (ICC),” he said.

    He urged the government to domesticate the Kampala Convention, a continental initiative to address the plight of the Internally Displaced People (IDP). He contended that it was not enough for the Nigerian government to ratify the convention, but that it should take a further and necessary step of domesticating the convention to allow for its municipal invocation as required under Section 12 of the Constitution.

    Dakas urged the government to also do more to alleviate the plight of the IDPs as it relates to meeting their basic subsistence and their rights to vote in the coming elections.

    He urged the government to direct efforts at addressing economic, social and cultural rights, arguing that the government cannot ignore the people’s rights to shelter, education, health, among others on the basis of lack of found.

    “The government should demonstrate that it is prioritising theses rights and that it is not frittering away resources in the name of corruption and pretending that there are no funds. It is one thing to have resources and it is another to ensure that the little that is realised is prudently utilised.

    Dakas noted that the media has a major role to play in promoting respect and protection of human rights. He said journalists must be vigilant and alert in reporting cases of rights abuses to keep government and its agencies on their toes.

    He reminded journalists that the right to freedom of expression and of the press, guaranteed by the Constitution, is not an absolute right that should be exercise to the detriment of the larger society. He said journalists, in the course of performing their responsibilities, must ensure accuracy. He also advised them to engage in constant self-improvement to prevent instances of inaccurate reportage of court proceedings

    “As judiciary correspondents, if you do not understand the nuances and fundamentals of human rights investigation, monitoring and reporting, you will be looking in the wrong places and be looking for the wrong things,” he said.

    Soniyi noted the increasing responsibility modern society has placed on the media, which now include reporting, analyzing and commenting on issues and events as they unfold. He stressed the need for journalist to always be guided by the interest of the larger society and avoid being influenced by the government or concerned interests.

    “The media, in reporting rights violations, should look deep into the problem and provide solutions. Mere reporting of the facts is not enough. It should give reasons for the problem, the nature of violations and proceed to give solutions,” he said.

    Buhari, who noted that the media was not doing enough to report the various rights abuses being perpetrated in the troubled Northeastern part of the country, urged media owners to empower journalists to put in their best.

    He said Nigerian journalists can compete effectively with their foreign counterpart if well equipped and protected.

    Buhari gave an instance where he was harassed and threatened with detention by the police for publishing pictures of killings and destructions in Southern Kaduna during one of the crisis.

    He said rather the being commended, the police, who wanted everything hidden from the public, accused him of publishing inciting materials.

    Buhari urged the journalists not to be deterred by existing challenges, but to seek creative ways of overcoming such challenges.

     

  • Sultan seeks  protection for corps members

    Sultan seeks protection for corps members

    The Sultan of Sokoto, Alhaji Muhammad Sa’ad Abubakar III, has urged security agencies to provide adequate protection for members of the National Youth Service Corps (NYSC) and other personnel to man polling units.

    He spoke when the NYSC Director-General, Brigadier General Johnson Olawumi visited him in his palace.

    The sultan urged the public, especially politicians, to ensure the safety of corps members.

    Abubakar informed Olawumi of the directive from the Sultanate Council to all district heads to ensure safety of corps members in their domain. This, he said, should be replicated in other parts of the country.

    He enjoined corps members not to be deterred by upheavals of the past, but to consider their engagement in the elections as a national duty.

    Sultan Abubakar urged them to go into the electoral assignment with a high sense of patriotism and to avoid identifying with any party.

    He reminded politicians that winners had been pre-destined by God and wondered why some of them viewed elections as a do-or-die affair.

  • ASUU seeks protection for UniBen lecturers

    ASUU seeks protection for UniBen lecturers

    The Academic Staff Union of Universities (ASUU) has asked Edo State Governor Adams Oshiomhole to respect the rule of law over the demolition of houses of lecturers.

    ASUU condemned the alleged violence on its members by agents of the state government,

    Its president, Nasir Fagge, in a statement in Ibadan, the Oyo State capital, alleged that unidentified agents of the government, accompanied by some thugs, brutalised its members occupying university buildings, on which litigation was pending.

    He said it was unbelievable that the governor could preside over a state where rather than providing homes for the people, legitimate owners were rendered homeless.

    Appealing for police protection for its members, the ASUU president also urged Oshiomhole to respect the rule of law.

  • Investor Protection Fund to compensate fraud victims

    The Investor Protection Fund (IPF) of the Nigerian Stock Exchange (NSE) may compensate investors who are victims of fraudulent activities by unscrupulous stockbrokers.

    The NSE on Monday said it has referred unresolved complaints against an expelled stockbroking firm to the IPF. The IPF rules allow the NSE to submit complaints made to it to the IPF while investors can also directly petition the IPF.

    The Nation had on Monday reported exclusively that the Exchange had revoked the licenses and expelled two stockbroking firms- Gosord Securities Limited and Lakesworth Investment & Securities Limited over fraud.

    While confirming the news report, the Exchange stated that the unresolved issues of settlement and restitution of investors who were victims of Gosord Securities has been referred to the IPF.

    “The unresolved complaints against Gosord which were either brought to the Exchange by complainants or referred to The Exchange by the Securities and Exchange Commission have been referred to the Investor Protection Fund,” the Exchange stated.

    The Nation had recently reported that IPF may soon begin payment of compensations to investors as the board of trustees of the scheme was finalizing operating groundwork to ensure smooth and continuous operations.

    An impeccable source in the know of the activities of the IPF had told The Nation that the board of IPF was rounding off operating structures and framework for the scheme and would roll out its maiden compensation soon to announce the commencement of effective operations.

    According to the source, after the approval of the IPF rules by the Securities and Exchange Commission (SEC), the board of trustees of IPF had gone back to the drawing board to ensure that it fashioned effective operating structure and framework that will sustain the scheme.

    SEC had in January, this year approved the rules for the NSE’s IPF. The rules empower the board of IPF to make payment of compensation based on the claim submitted to the NSE and verified by the NSE or claim submitted to the board of IPF and verified by it, according to relevant sections of the ISA.

    The IPF rules empower the board of IPF to have at anytime a written policy on the maximum compensation payable to an investor who has suffered a loss. The board can review this maximum compensation limit from time to time according to prevailing circumstances at the market.

    Compensation would be paid subject to conclusive decision of the board on the basis of evidence that the investor has a claim against a dealing member, duly applied for settlement of its claim from the dealing member; the dealing member was unable or likely to be unable to satisfy the claim within a reasonable period and the investor then, duly applied for compensation from the Fund.

    The board of IPF is also empowered to invest the funds with a view to grow the capital base of the IPF.

    Part XIV of the Investment and Securities Act 2007 requires the Exchange to establish and maintain an investors protection fund to compensate investors with genuine claims of pecuniary loss against dealing member firms resulting from insolvency, bankruptcy or negligence of a dealing member firm of a securities exchange or capital trade points; and defalcation committed by a dealing member firm or any of its directors, officers, employees or representatives in relation to securities, money or any property entrusted to, or received by the dealing member firm in its course of business as a capital market operator.

    The IPF rules indicates that an investor whose claim is within the maximum limit may be paid the full amount of the loss, after deduction of any amount or value of all monies or other benefits received or receivable by the investor from a source other than the Fund in reduction of the loss.

    Besides, where the board is satisfied that in principle compensation is payable but considers that immediate payment in full would not be prudent having regard to other applications for compensation, or to any uncertainty as to the amount of the investor’s overall net claim, the draft empowers the board to pay an appropriate lesser sum in final settlement or to make a payment on account.

    The board may also determine to make a payment on account or to pay a lesser sum where the investor has any prospect of recovery in respect of the claim from any third party or through an application for compensation to any other person or authority.

    Compensation would be paid subject to conclusive decision of the board on the basis of evidence that the investor has a claim against a dealing member, duly applied for settlement of its claim from the dealing member; the dealing member was unable or likely to be unable to satisfy the claim within a reasonable period and the investor then, duly applied for compensation from the Fund.

    According to the rules, an application for compensation may be rejected if it is not promptly made and in any event within the periods stipulated in the ISA or where the investor is responsible for, or has directly or indirectly profited from, events relating to the dealing member firm’s business which gave rise to the firm’s financial difficulties.

    In the event of multiple claims, person who claims in a double capacity for himself and as the personal representative of a deceased investor will be treated in respect of the representative claim as if he were the deceased investor without prejudice to his own personal claim.

    Also, where a person claims for himself and as a trustee, he will be treated in respect of the latter claim as a different person.

    But where two or more persons in partnership have a joint beneficial claim, the claim will be treated as the claim of the partnership; otherwise each of them would be taken to have equal shares in the claim unless the contrary is proved to the satisfaction of the board.

    According to the rules, where an agent has a claim for one or more principals, the principal or principals are to be treated as having the claim, to the exclusion of the agent.

    According to the Exchange, the two expelled stockbroking firms, which were indicted for “unauthorized sale of clients’ shares”, failed to restitute the shareholders as directed by the disciplinary committee, which investigated the two firms.

    Head, Legal and Regulation Division, Ms. Tinuade Awe explained that of all the penalties, expulsion and revocation of dealing license is usually viewed as a last resort where a dealing member fails to engage in conduct to rectify wrong doing or comply with the directives of the National Council of the Exchange.

    “NSE is committed to restoring investor confidence in the Nigerian capital market. NSE will not hesitate to bring the full weight of its regulatory powers to bear on any dealing member that commits regulatory infractions and does not take steps to address them as appropriate even after being given sufficient time to do so,” Awe said.

    NSE had received several complaints of unauthorized sale of clients’ shares against Gosord. The National Council among others found that Gosord breached Article 59(v) of the Rules and Regulations Governing Dealing Members of NSE by engaging in unauthorized sales of clients’ shares; Gosord failed to buy back clients’ shares and resolve all complaints against it, as directed by the Disciplinary Committee and that Gosord’s conduct was dishonorable, disgraceful, unprofessional and detrimental to the interests of NSE by destroying investors’ confidence in the market and eroding the goal of NSE to operate a fair, transparent and orderly market.

    NSE also received one complaint of unauthorised sales of a client’s shares against Lakesworth. The National Council found that Lakesworth breached Article 59(v) of the Rules and Regulations Governing Dealing Members of The Exchange by engaging in unauthorized sales of a client’s shares while the firm also failed to buy back the client’s shares and resolve all complaints against it, as directed by the Disciplinary Committee.

    “The general public should not deal with the expelled firms in relation to any transactions on NSE. Investors who hold stockbroking accounts in Gosord or Lakesworth should transfer their stocks to any active licensed stockbroking firm that is a Dealing Member of NSE,” the Exchange stated.

    The Exchange urged investors or clients of either of the two expelled firms who may have deposited funds or securities such as share certificates with Gosord or Lakesworth to go and collect such assets directly from the expelled firm.

     

     

     

     

  • Investors’ Protection Fund to pay investors compensation

    Investors’ Protection Fund to pay investors compensation

    The Investors’ Protection Fund (IPF) of the Nigerian Stock Exchange (NSE) may soon begin payment of compensations to investors as the board of trustees of the scheme finalises operating groundwork to ensure smooth and continuous operations.

    A  source in the know of the activities of the IPF told The Nation that the board of IPF was rounding off operating structures and framework for the scheme and would roll out its maiden compensation soon to announce the commencement of effective operations.

    According to the source, after the approval of the IPF rules by the Securities and Exchange Commission (SEC), the board of trustees of IPF had gone back to the drawing board to ensure that it fashioned effective operating structure and framework that will sustain the scheme.

    “Any moment from now, the IPF will do something. The board is well aware of anxieties by stakeholders but it is taking its time to ensure things are done very well. After the rules, there were still some background things that needed to be done, these are being finalized now,” the source said.

    A management source at the NSE had hinted that the IPF would also look at the backlog of complaints already submitted to the Exchange as starting points for its operations in addition to new complaints.

    The IPF rules allow the NSE to submit complaints made to it to the IPF while investors can also directly petition the IPF.

    SEC had in January 2014 approved the rules for the NSE’s IPF. The rules empower the board of IPF to make payment of compensation based on the claim submitted to the NSE and verified by the NSE or claim submitted to the board of IPF and verified by it, according to relevant sections of the ISA.

    Sources in the know said some of the post-approval groundwork included the written policy on compensation, management of funds and reporting guidelines in order to ensure that the operations of the scheme are transparent and equitable to all investors.

    The IPF rules empower the board of IPF to have at anytime a written policy on the maximum compensation payable to an investor who has suffered a loss. The board can review this maximum compensation limit from time to time according to prevailing circumstances at the market.

    Compensation would be paid subject to conclusive decision of the board on the basis of evidence that the investor has a claim against a dealing member, duly applied for settlement of its claim from the dealing member; the dealing member was unable or likely to be unable to satisfy the claim within a reasonable period and the investor then, duly applied for compensation from the Fund.

    The board of IPF is also empowered to invest the funds with a view to grow the capital base of the IPF.

    Part XIV of the Investment and Securities Act 2007 requires the Exchange to establish and maintain an investors protection fund to compensate investors with genuine claims of pecuniary loss against dealing member firms resulting from insolvency, bankruptcy or negligence of a dealing member firm of a securities exchange or capital trade points; and defalcation committed by a dealing member firm or any of its directors, officers, employees or representatives in relation to securities, money or any property entrusted to, or received by the dealing member firm in its course of business as a capital market operator.

    The NSE had in 2012 inaugurated a nine-man board of trustees under the chairmanship of Mr Gamaliel Onosode. Other members of the board included managing director of Nigerian Stock Exchange (NSE), Oscar Onyema; Misan Kofi-Senaya, managing director of Central Securities Clearing System (CSCS), Mr. Kyari Bukar, Chairman, Ibadan Zonal Shareholders Association (IBZA), Chief Sola Abodurin; Fubara Anga, Edosa Kennedy Aigbekaen, Sam Onukwe and Umaru Modibo.

    The IPF rules indicates that an investor whose claim is within the maximum limit may be paid the full amount of the loss, after deduction of any amount or value of all monies or other benefits received or receivable by the investor from a source other than the Fund in reduction of the loss.

    Besides, where the board is satisfied that in principle compensation is payable but considers that immediate payment in full would not be prudent having regard to other applications for compensation, or to any uncertainty as to the amount of the investor’s overall net claim, the draft empowers the board to pay an appropriate lesser sum in final settlement or to make a payment on account.

    The board may also determine to make a payment on account or to pay a lesser sum where the investor has any prospect of recovery in respect of the claim from any third party or through an application for compensation to any other person or authority.

    Compensation would be paid subject to conclusive decision of the board on the basis of evidence that the investor has a claim against a dealing member, duly applied for settlement of its claim from the dealing member; the dealing member was unable or likely to be unable to satisfy the claim within a reasonable period and the investor then, duly applied for compensation from the Fund.

    According to the rules, an application for compensation may be rejected if it is not promptly made and in any event within the periods stipulated in the ISA or where the investor is responsible for, or has directly or indirectly profited from, events relating to the dealing member firm’s business which gave rise to the firm’s financial difficulties.

    The draft empowers the board to make payment of compensation based on the claim submitted to the NSE and verified by the NSE or claim submitted to the board of IPF and verified by it, according to relevant sections of the ISA.

    In the event of multiple claims, person who claims in a double capacity for himself and as the personal representative of a deceased investor will be treated in respect of the representative claim as if he were the deceased investor without prejudice to his own personal claim.

    Also, where a person claims for himself and as a trustee, he will be treated in respect of the latter claim as a different person.

    But where two or more persons in partnership have a joint beneficial claim, the claim will be treated as the claim of the partnership; otherwise each of them would be taken to have equal shares in the claim unless the contrary is proved to the satisfaction of the board.

    According to the rules, where an agent has a claim for one or more principals, the principal or principals are to be treated as having the claim, to the exclusion of the agent.

     

     

  • Women lack access to protection measures, says ILO

    A large majority of women lack access to quality maternal and infant health care and other maternity protection measures, Director-General, International Labour Organisation (ILO), Guy Ryder, has said.

    Ryder who stated this in a statement marking this year’s International Women’s Day, added that this challenge effectively penalises women fromtheir reproductive role, stressing that risks and opportunities for women often vary depending on their colour, religion, social origin, or skills levels.

    However, he said the situation is not all gloom as countries across the world continue to adopt policies that reduce discrimination against women. ”There has been notable progress in the area of national legislation with most countries having incorporated the principles of equality and non-discrimination.

    “Many governments have adopted active labour market policies to tackle discrimination against women and a growing number of employers’ and workers’ organisations are implementing initiatives on equal opportunity and treatment. A number of individual women have managed to advance and to break through the glass ceiling,” Ryder said.

    “Stubborn and often profound gaps persist. Progress in increasing women’s labour market participation has been uneven according to our 2014 Global Employment Trends Report.

    “He said occupational sex-segregation and gender pay gaps persist, adding women are over-represented in the informal economy, precarious work, and in low-paid jobs.” He listed South-East Asia and the Pacific, as areas were vulnerability in women unemployment was highest in 2013, climbing to as high as (63.1 per cent as compared to 56 per cent for men).

    In the formal economy, share of decision-making posts remains low notwithstanding the pool of talent.

    He said services to assist women and men in balancing work and family responsibilities – particularly state-funded and quality childcare are unavailable or inaccessible for many, adding that such care still largely falls on the shoulders of girls and women.

    Meanwhile, members of the Nigeria Labour Congress (NLC) Women Commission, have called on the Federal Government to immediately end the killings in the northeast and the fuel scarcity in the country.

    The women activists who joined the rest of the world last Saturday to commemorate the 2014 International Women’s Day at the Labour House in Abuja, said women were the worst hit in times of social or economic crisis, adding that women will make representation to the Ministry of Women Affairs on the need to rise up against injustices against women.

    Chairperson of the NLC Women Commission, Lucy Offiong, said women are adversely affected by the killings because they are not only killed, but also abducted and turned to sex slaves.

    ”We are saddened by the spate of killings in our dear country, Nigeria, especially the recent dimension of targeting young people in schools and colleges.

    ”The recent killing of students in Yobe and the abduction of girls by the Boko Haram sect; as mothers, we are greatly disturbed and condemn in strong terms, such cruel, inhuman and senseless killings. We therefore call on the President to take immediate steps and put a final stop to these unwarranted killings,” Offiong said.

    The NLC President, Abdulwahed Omar, in his remarks, noted that the Federal Government may be plotting to privatise the downstream sector of the oil industry, hence the inexplicable fuel scarcity currently rocking the nation.

    However, he said the NLC will lead Nigerians against any such plot, considering the fact that Nigeria is a major producer of oil and does not have any business importing oil.

  • ‘Risk protection for low-income population rises’

    ‘Risk protection for low-income population rises’

    Risk protection for the low-income population by insurance has increased significantly over years, says a report by the Responsible Finance Forum.

    However, only adequate products of good quality can help low income households in effectively managing their risks.

    This entails consumer protection needs to be higher in this segment and failures can have severe consequences for the insured as well as for the development of emerging insurance markets in general.

    The report came during the Responsible Finance Forum, hosted by the German Federal Ministry for Economic Cooperation and Development (BMZ) and the Federal Financial Supervisory Authority (BaFin) recently in Berlin, representatives of supervisory authorities, industry and development organizations discussed consumer protection in emerging insurance markets.

    The Responsible Finance Forum is an important milestone in sharing knowledge and best Practice around the topic of Responsible Finance, which includes three pillars: financial consumer protection regulation, industry self-regulation and the enhancement of consumer capabilities. The participants of the Forum exchanged ideas and experiences and presented initiatives on how to increase consumer protection within these three pillars for low-income-households in emerging insurance markets.

    The topic of responsible finance has become a priority of the G20 and of Financial Sector Development worldwide and the Responsible Finance Forum is an important milestone in sharing knowledge and best practice in responsible finance globally.

    The Forum was organized in partnership with the Access to Insurance Initiative (A2ii), the Consultative Group to Assist the Poor (CGAP), the International Association of Insurance Supervisors (IAIS), the International Finance Corporation (IFC), the International Labour Office (ILO), the Microinsurance Network, the Ministry of Foreign Affairs of the Netherlands, and the Munich Re Foundation.

    At the fourth Responsible Finance Forum, hosted by the German Federal Ministry for Economic Cooperation and Development (BMZ) and the Federal Financial Supervisory Authority (BaFin) and organized by GIZ on June 24-25, 2013 in Berlin, representatives of supervisory authorities, industry representatives and development organisations discussed consumer protection in emerging insurance markets.

     

     

    The timing of the debate on responsible microinsurance could not be more pertinent, the report had stated.

    “There are now more than 500 million micro insurance consumers and that number keeps growing. Innovations are taking place to bring down costs, guarantee profits, achieve affordability and extend the reach. In order to sustain growth, achieve scale and sustainability, consumers must experience true value. 85 high-ranking participants from 23 countries exchanged ideas and experiences and presented initiatives on how to advance the agenda for responsible finance in emerging insurance markets.

    “Adequate consumer protection solutions can help consumers to use microinsurance effectively, ensuring greater trust in microinsurance and as a result encouraging further market development.

    Queen Máxima of the Netherlands, UN Secretary-General’s Special Advocate for Inclusive Finance for Development (UNSGSA), underlined in her written welcome note to the conference that it is essential to guarantee the provision of “products that are responsible, that build consumer confidence and trust, and reach scale and sustainability”.

    Participants recognised that the main challenge in consumer protection in microinsurance is to strike the right balance between effectively protecting the consumer and increasing access to microinsurance by promoting the development of the microinsurance market. In doing so, the three pillars of responsible finance were confirmed to increase both protection and access for low-income households:

    In respect of the first pillar of responsible finance, consumer protection through regulation, the International Association of Insurance Supervisors (IAIS) is playing an essential role in setting standards and building regulatory and supervisory capacity.