Thursday, August 20, 2015/ 7.20am / The Nigerian Investor, firstname.lastname@example.org
The Board of Trustees of Investors’ Protection Fund managed by the Nigerian Stock Exchange recently announced that it will be paying its first set of compensations to Investors after its establishment.
The Vice Chairperson of the Board Mr. Fubara Anga while reading out its speech said the IPF will be compensating 154 investors that have been approved for payment out of the 379 that were properly verified by an identity consultant.
The 154 investors are expected to get total value of N40, 627,397 payable as compensation out of the 379 whose actual loss value was quoted at N1, 694,122,771.
The fund sets its maximum compensation value payable at N400, 000 as 81 investors are expected to get above full value of their loss in investment, 73 are expected to receive below the face while 78 are to receive exact compensation value of the fund which is N400, 000.
So far, 23 investors have been compensated to the tune of N7, 282,637 as at 17th August, 2015 as the highest claim before the IPF is N185, 000 and the lowest N1, 400.
Chief Sola Abodunrin Chairperson Ibadan Zone Shareholders’ Association, representing shareholders and also a member of the IPF board of Trustees is of the view that the gesture from the fund to compensate the verified investors is a good one which will help restore some confidence in the market.
While this set of investors are lucky enough to get adequate compensation for their investment losses, other types of investors such as High Networth Individuals (HNIs) might not be these lucky as the fund’s board might not compensate above the N400,000 payable sum.
While responding to a question thrown to the Vice Chairperson of the IPF Board by the TNI crew on whether there is any effort by the fund board in making recommendations to market regulators on how to improve market standard and regulations in order to reduce the rate at which the fund will be paying compensations.
He responded that with new rules and current steps taken by market regulators, operators too are aware of the fact that it is no longer business as usual, hence the need to comply with new trends, standards and regulations in the market.