The Financial Market Dealers Association of Nigeria has kicked against moves by the Chartered Institute of Stockbrokers and four other professional bodies to float the Chartered Institute of Securities and Investment of Nigeria to regulate financial market operations in the country.
FMDA, created to develop financial market infrastructure, human capital and promote professional and ethical standards in treasury activities in Nigeria, distances itself and its members from the CISI Bill sponsors.
They claimed that it was created to destabilise the financial market and economy.
The other bodies include Institute of Capital Market Registrars, Fund Managers Association of Nigeria, Association of Issuing Houses of Nigeria and Association of Investment Advisers and Portfolio Managers.
FMDA Secretary, Mrs. Mary Gbegbaje, said that the CISI Bill sought to repeal the current Chartered Institute of the Stockbrokers Act, with the principal objective of determining standards of practice in the securities and investment business.
She noted the concerns of the financial publics about the intention and purpose of the bill, adding that FMDA would not accede to signing the Memorandum of Understanding from the Chartered Institute of Stock Brokers to distort and weaken securities and investment activities in the Nigerian capital market.
FMDA has, through its governing council, informed CIS that the Treasury Management Certificate was issued by the Chartered Institute of Bankers of Nigeria to qualified candidates and remains the minimum requirement as stipulated by the Central Bank of Nigeria’s Competency Framework Document for anyone to be in the treasury department of any bank in Nigeria.
FMDA stated, “Ordinarily, if the coverage of the proposed bill is limited to the activities of stockbrokers, we would not have been concerned. However, the bill seeks to cover every aspect of securities and investment, including the thriving Fixed Income OTC markets, which was nurtured by financial markets stakeholders.”
FMDA kicked against CIS’s intent to regulate all other trade groups and associations that are engaged in capital market activities. The bill also makes it illegal for individuals and corporations to practise without the membership of the institute.
It raised issues concerning the dissolution of the CIS, definition of securities and investment professionals, election, tenure and qualification of the president and vice presidents of the institute and composition of the governing council of the CISI.
FMDA said it made some suggestions years back on areas requiring amendments after receiving legal opinion, guidance and counsel from Banwo & Ighodalo chambers.
The CISI Bill, which was first sponsored by Senator Ganiyu Solomon (May 2007 to May 2011) for CIS, is now before the National Assembly awaiting passage.
The FMDA had, in March 2013, written to the Senate Committee on Capital Markets, imploring that the bill be stepped down while highlighting several threats it would have on financial system stability.
The current CISI Bill is being sponsored by the Chairman, House of Representatives Committee on Capital Market, Babangida Ibrahim, to replace the CIS Act 105 of 1992 that set up the CIS.
The FMDA insisted that it would not be part of a move to polarise the financial market it nurtured for decades and still building; declining to accede to the request of signing the MoU.
