SEC, NSE express worry over Stockbrokers' Bill
The Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) yesterday raised concerns on some sections of the proposed Chartered Institute of Securities and Investment Bill, 2013.
They noted that it would lead to duplication of regulatory oversight functions, though the Bill was well intended from an operational point of view.
The two agencies spoke at a one-day public hearing organised by the Senate Committee on Capital Market on a 'Bill for an Act to Repeal and Enact the Chartered Institute of Stockbrokers (CIS) Act Cap. C9 LFN 2004' in Abuja.
The Head, Corporate Service Division of the NSE, Bola Adeeko, in his presentation, expressed concern over the composition of the governing council of the proposed body.
Adeeko noted that the membership of the board as proposed contradicted the 2004 Act, where the NSE is permanently represented as the foremost agency in the capital market.
He also noted that the scope of the proposed Bill needed to be adequately articulated and defined.
He said: 'The proposed bill seeks to regulate and control the practice of Securities Dealings and Investment Advisory profession and for related matters.
'The regulatory functions and powers needed to be clearly defined and restricted to professional standards and ethical conducts'.
On his part, the Executive Commissioner, Operations, SEC, Mr. Mounir Gwarzo, said though repeal and reenactment of the Act is capable of strengthening the capital market, there was need to carry all stakeholders along.
According to him, SEC is not comfortable with some provisions of the Bill.
Gwarzo said: 'We believe from what we have seen in the Nigerian Capital Market in the last 10 to 15 years that there is a lot of value in CIS certifying brokers.
'If such certification is extended to other operators in the market, it is our opinion that we will be able to get the best out of it. But we also caution on the need to have everybody on board. Get the buying in of all the stakeholders.'