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Thursday, December 27,
2018 6.00AM / SEC Nigeria
The Securities and Exchange Commission, SEC, has urged shareholders to
monitor their investments in the capital market, assuring that the Apex
Regulator will live up to its responsibilities on investor protection.
Acting Director General of the SEC, Mary Uduk stated this in an interview
in Abuja Wednesday.
She said the Commission has put in
place a number of initiatives to protect investors as well as boost their
confidence including the e-dividend mandate Management System, Direct Cash
Settlement, setting up a committee on identity management in the Nigerian
Capital Market Regularization of Multiple Subscription, Complaints Management
Framework among others, but however enjoined investors to take ownership of
their investments.
According
to her “They have to be able to monitor their investments, attend Annual
General Meetings as well as read the annual reports sent out to them. On our
part, we protect them through the National Investors Protection Fund (NIPF)
Risk Based supervision that enables us to supervise the operators to ensure
that they do not do what they are not supposed to do. And again the Complaints
Management Framework enables investors to know where to complain to and how
long it takes for such complaints to be resolved.
“We advise investors to get their financial advisers to advise them
properly on where to invest. In this area, we advise retail investors to invest
in Collective Investment Schemes and Mutual Funds because those are managed
independently by professionals and they are diversified thereby reducing risks.
We are committed to protecting investors in the work we do.
Uduk said the Commission is working with other major stakeholders in
setting up a committee that will look into and proffer solutions to problems
around identity management in the Nigerian capital market.
“So for instance, to boost the e-dividend mandate and Direct Cash
Settlement initiatives, we are engaging NIBSS (Nigeria Inter-Bank Settlement
System) on behalf of the capital market community to facilitate identity
validation and account validation in an effort to enhance market processes” she
stated.
The Acting DG also disclosed that the electronic distribution of annual
accounts by public companies to shareholders continues to record tremendous
success, as shareholders have largely accepted the new initiative and are
willingly providing their email addresses. Alongside other stakeholders, we
have continued sensitization to further enlighten shareholders on the benefits
of the initiative.
On the need to grow the market for trading in securities on unlisted
public companies, Uduk said the SEC is making concerted efforts in
collaboration with CAC and other stakeholders to assist public companies that
are yet to register their securities to do so without much difficulty.
On the role of technology in the Nigerian Capital market, Uduk said
Innovations in financial technology, has made possible the potential of
using digital tools to make financial services available to a wider range
of consumers and enterprises, promoting financial inclusion and the affordability
of financial services, adding “A financially inclusive society will provide
increased access to finance, especially for women, help support sustainable
growth and will create a million more jobs. The gains of having a more
inclusive financial system are enormous, as it helps broaden financial markets
and make policies more effective”.
These initiatives she added, continue to highlight and promote
developments and trends in the Nigerian Capital Market and drive Financial
Inclusion aimed at reducing adult exclusion from financial services.
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