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SEC Seeks Collaboration on Dispute Resolution in Capital Market

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Nigeria SEC- Investors king

The Nigerian Securities and Exchange Commission revealed readiness to collaborate with relevant Alternative Dispute Resolution (ADR) professionals to ensuring effective dispute resolution in the capital market.

Director-General of the SEC, Mr. Lamido Yuguda affirmed this and explained that this new development will create avenues to maintain disputes and sustain investment in the capital market.

This was expressed by the DG in Abuja on Wednesday at the Abuja Chapter of the Chartered Institute of Arbitrators (CIArb) meeting led by its chairman, Mr. Sola Ephraim-Oluwanuga.

Mr. Yuguda said that the need for a veritable dispute resolution mechanism has long been recognised in the capital market, that traditional litigious and adversarial dispute resolution mechanism has fallen short of achieving its purpose, adding that investment in the sector would suffer if disputes among investors are not well resolved.

He said, “the whole nature of the market is that people come together to make investments. But along the line, something happens and the same people actually fall out.

“And the problem with investment is that if the true parties to investment fall out, investment falls. We understand that both parties usually cling to their positions but there is a superior situation that could benefit both parties. This is where an arbitrator is needed to actually bring them to that position. And that arbitrator, who is seen as independent, performs his professional duty by talking to the parties.”

He also said the visit by the members of the institute could not have come at a better time, assuring that the commission partnering with an institute whose members are specialised in the area of dispute resolution is actually highly beneficial to both the SEC and practitioners in the capital market.

Mr. Ephraim-Oluwanuga, the CIArb Chairman said the institute was desirous of partnering with SEC to deepen the access to justice in the Securities Industry.

He said CIArb has trained competent International arbitrators with demonstrable experience in capital market issues, adding that the institute can also assist the SEC in training and capacity building of its personnel.

“CIArb can train subject matter experts on securities dispute resolution. Also, the industry may also put CIArb in its agreement as an Appointing authority to any dispute involving Arbitration, whilst preferring its members to serve as party nominated arbitrators in the sector.” He added.

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Capital Market

NGX to Host Inaugural TechNovation Conference

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Nigerian Exchange (NGX) Limited is set to host the inaugural edition of its TechNovation Conference on Thursday, 30 September 2021.

NGX TechNovation Conference is a flagship event that provides a platform for local and global technology leaders to syndicate conversations around technology, partnerships and innovation that can advance technology adoption in the Nigerian capital market.

With the theme, “Technology, Platforms and Markets”, the event will be hosted by the Chief Executive Officer (CEO), Nigerian Exchange (NGX) Limited, Mr. Temi Popoola, CFA and will feature leading industry experts across the public and private sectors including the Director General, Securities and Exchange Commission (SEC), Mr. Lamido Yuguda; Dr. Segun Aina, President, Africa Fintech Network; and Olugbenga Agboola, Co-Founder and CEO, Flutterwave.

Key topics to be addressed during the conference are: The Future is Digital – Digital Transformation, New Tech and Emerging Markets; The Path to Exponential Growth – New Technology, Platforms, Emerging Markets, Data & Regulation; and Beyond Tech – Partnerships, Business Models and Innovation. Interested participants can register online at www.ngxgroup.com/ngx-tech-con.

Some of the other confirmed speakers at the event include; Iyin Aboyeji, Founder & General Partner, Future Africa; Bayo Adekanbi, Chief Transformation Officer, Data Science Nigeria; Dayo Obisan, Executive Commissioner (Operations), SEC; Abasi Ene-Obong, CEO, 54Gene; Oremeyi Akah, Chief Customer Experience Officer, Interswitch; Ini Akpan, Country Manager, Opay; and Andreas Itern, Co-Founder & CEO, F10.

The advancement and exponential growth of technology around the world has signaled a new wave of opportunities for forward thinking organisations. NGX remains committed to leveraging technology to provide a broad range of services including but not limited to smart capital formation. TechNovation will, therefore, serve as a platform that can create opportunities for smart business leaders looking to tap into the next level of growth and competitive advantage.

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Capital Market

SEC Implements 100% Custody Requirement in Collective Investment Schemes

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Nigeria SEC- Investors king

Nigeria’s Securities and Exchange Commission (SEC) has announced that it has commenced implementation of 100 percent custody requirement in the Collective Investment Schemes (CIS) sector to protect investors.

The Director-General of the SEC, Mr Lamido Yuguda said this in a statement that the custody requirement covered all Funds and Portfolios being managed by registered Fund/Portfolio Managers.

He explained that all clients’ assets managed under discretionary and non discretionary mandates were to be held under independent custodial agreement and custodial banks.

According to Yuguda, this was in addition to CIS, Mutual Funds, authorised for public offering.

Yuguda said that although it was a natural operational requirement of CIS, the SEC was having some new enforcement and insistence on the compliance that has been in the books, but have not been implemented before now.

“For example, we have the collective business sector where you have the fund managers. We have a dichotomy between public funds, which are funds that are publicly traded, and you can see the unique values on the stock exchange and in newspapers daily.

“There are also private, which are investment agreements between fund managers and specific investors. A lot of these funds in the privately held fund management mandates are in our custody.

“The investment manager before now did not only have the investment management responsibility for the fund, but also kept the securities and cash as whole shares in this investment.

“The risk is that if the investment manager should go bust, then the investor loses and that is not acceptable in financial markets around the world. I think with the introduction of total custody in that sector, we are likely to see a massive uptake of these kinds of products.

“We have released some regulations recently in this area for the different types of fund managers, and I think this is an area that is now becoming increasingly attractive to investors and is also receiving the attention of the commission”.

According to Yuguda, with the SEC having 100 per cent custody agreement in the CIS sector, any investor in the capital market should be confident that their investments were secure.

He added that it was a good thing for the market and an area that can bring about a lot of growth in the market because it offered a very good opportunity to save.

The SEC D-G also said that the commission was also looking at the market to see how it could formulate regulations that would help investors protect their investments.

“We have a Fintech division in the commission that was set up purposefully to understand these new types of investment structures and to collaborate with Fintech firms that wish to register as capital market operators and offer services to the investing public. “This is a developing area, and we intend to issue new regulations from time to time,” he added.

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Capital Market

Chemical and Allied Products Plc Lists Additional 88,259,520 Ordinary Shares After Merging With Portland Paints

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CAP Paint - Investors King

The Chemical and Allied Products Plc (CAP Plc) on Friday announced listing of 88,259,520 ordinary shares of 50 kobo on the Nigerian Exchange Limited (NGX).

The announcement came few weeks after CAP Plc and Portland Paints merged to deepen market reach and enhance quality of production.

In a statement released by CAP, the company said “Trading License Holders and the investing public are hereby notified that the resultant Scheme shares of 88,259,520 ordinary shares of 50 Kobo each were listed on the Daily Official List of Nigerian Exchange Limited (NGX) on Friday, 17 September 2021.

“With the listing of the additional 88,259,520 ordinary shares, the total issued and fully paid up shares of CAP Plc has now increased from 700,000,000 to 788,259,520 ordinary shares of 50 kobo each.

“In addition, the entire 793,415,535 issued and outstanding shares of Portland Paints were delisted from the NGX’s Daily Official List effective, 17 September 2021 in accordance with the terms of the Scheme.”

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