The Securities and Exchange Commission has resolved to intensify monitoring and surveillance of the market and has vowed to apply stiff sanctions to any operator who engages in unethical conduct.
Mr. Lamido Yuguda, the Director General of the SEC, stated this in an address at the Annual Stockbrokers Conference of the Chartered Institute of Stockbrokers with the theme: Capital Market as a Catalyst for Economic Development and Sustainable Growth held in Lagos.
He said capital market operators are the face of the market and they interact daily with investors adding that it is therefore important that they prioritise interest of investors over their own and be seen to demonstrate the highest level of integrity and transparency in conducting their activities.
He added:“Poor conduct dissuades investors from our market and therefore counters our collective objective of broadening and deepening the market.
“We also expect that the institute will continue to make it mandatory for its members to undertake annual professional development programs that address emerging issues. I believe that this will go a long way in ensuring that the practitioners in the market are highly skilled and are equipped to make real impact towards growing the market.
He disclosed the SEC has led several initiatives to reposition the Nigerian capital market to better support sustainable economic growth and development through the articulation of responsive and adaptable Rules to support innovation and access to capital for small and medium enterprises, promotion of good corporate governance, an improved registration process, an adequate and transparent disclosure regime, enhanced enforcement machinery and dispute resolution mechanisms.
He said “Most of our more recent efforts at developing our market are targeted at contributing to the growth of the national economy. For instance, the core objective of the ten-year Capital Market Master Plan is to position the capital market for an accelerated development of the national economy. Some level of success has been recorded from its implementation so far and efforts are currently on-going to re-launch it for better impact during the remaining period of its implementation.
“As stakeholders, it is important to have a common understanding of the role the capital market plays not just as a catalyst of economic development but the trend, drivers and preconditions for a robust and viable capital market. The World Bank acknowledges that there are many areas of this relationship where research has been found thin.
“It is equally important for investors to perceive the capital market and capital market intermediaries as working for them and not against them. May I therefore use this opportunity to implore the Institute to identify some specific areas that could be used as a stimulus to improve the current state of the market, such as; diversification of investment products; promotion of investor education and financial literacy; strengthening corporate governance and listing standards”.
He assured that the SEC will continue to take steps that empower trade groups and professional associations for more effective market regulation reassuring of the Commission’s commitment and determination to restore investor confidence, preserve market integrity and reduce systemic risk.
He commended the Chartered Institute of Stockbrokers (CIS) for organizing the yearly event adding that the annual conference has over the years established itself as a major calendar event on the schedule of policymakers and market participants.
