According to the Securities and Exchange Commission (SEC), the Investments and Securities Bill (ISB) 2022’s approval would improve the capital market’s performance and make economic diversification easier.
Lamido Yuguda, director general of the SEC, announced this last week in Abuja during the public hearing on the ISB 2022 and the Chartered Institute of Stockbrokers Bill.
Yuguda emphasized the importance of the bill’s passage and implementation as a necessary step in reviving the economy. Therefore, he urged important players to realize the goal.
“The Bill expands the definition of a Collective Investment Scheme (CIS) to include schemes offered privately to qualified investors. Minor reviews on various Sections of the extant law have been carried out to provide greater clarity.
It’s significant that the Bill explicitly outlaws Ponzi and pyramid scams in addition to other unethical investment schemes. The Bill also mandates a minimum 10-year prison sentence for those who promote such schemes.
“This Bill includes a completely new section that regulates commodity exchanges and warehouse receipts. These clauses are necessary to permit the growth of the entire spectrum of the commodities ecosystem,” he said.
Yuguda noted that the National Pension Commission (PenComparticipation )’s on the SEC board is recommended in the Bill in order to foster greater cooperation between the two organizations and to stimulate more pension fund investments in capital market products and instruments.
The head of the SEC claims that new methods for managing systemic risk have been implemented.
These include agreements with other regulators regarding the information needed from firms that are subject to their regulation, as well as the monitoring, management, and mitigation of systemic risk in the Nigerian capital market. Others include information sharing between government agencies or regulatory bodies for the financial industry, as well as using a legal entity identity to properly monitor systemic risks.
The National Assembly was also given with the justification for and advantages of passing the Bill over the weekend by the Chartered Institute of Stockbrokers (CIS) and Association of Securities Dealing Houses of Nigeria (ASHON). In order to control the registration of all professionals working in the securities industry, it was proposed that CIS would be changed into the Chartered Institute for Securities and Investment (CISI).
Similar to this, ASHON has suggested that stockbrokers, who are essential participants in the Nigerian capital market, be added to the SEC board.
According to a statement from the CIS, it is important to clearly specify the range of duties performed by the organization and the securities that stockbrokers are permitted to deal in.
