SEC Warns Capital Market Operators Against Unethical Practices

The Securities and Exchange Commission (SEC), at the weekend warned that it would not tolerate any form of infractions by capital market operators in its determination to ensure confidence in restored among investors.
This, it said, according to a statement by Efe Ebelo, Head, Corporate Communications at the SEC, is why steps are being taken to ensure that the commission’s regulatory oversight of the market becomes even more effective while enhancing investor protection and mitigating systemic risks.
Speaking at an induction ceremony for newly qualified authorized dealing clerks of the Nigerian Stock Exchange (NSE) in Lagos, Acting Director-General of the SEC, Ms. Mary Uduk, urged them to abide by the highest standards, while maintaining the integrity of their profession.
She challenged the new inductees to imbibe a culture of compliance to rules and regulations, as well as transparency, as they carry on their activities in the market.
Represented by the zonal head Lagos office of the commission, Stephen Falomo, Uduk described the induction ceremony for the deserving freshly qualified professionals is a welcome development.
She acknowledged the exemplary performance of the new stockbrokers during their Automated Trading System (ATS) training at the NSE, which secured them a place in the profession.
Becoming a full-fledged dealing member of the NSE, she continued, is “a position of great trust, because now you will be handling investments for individual and corporate investors, and this you must do with the utmost care and highest standards of integrity and ethical practice to forestall any breach of trust.
“You must also be determined to bring positive changes into the market as you launch your careers and challenge the status quo in the areas of capacity building and innovativeness while bringing fresh and innovative ideas into product development, as well as efficiency in service delivery to the investors,” she stressed.
Uduk said the use of ICT has been fully integrated into financial services, following which Financial Technology (Fintech) and Regulatory Technology (Regtech) are now trending. This, she said is especially at a time now when Fintech and Regtech have been embraced by both operators and investors to further enhance the growth and expansion of business in addition to regulatory and compliance issues.
She, therefore, urged the new inductees to ensure that they get a good grounding on the relevant technological advancement necessary to enable them to cope with the pace in today’s market, while staying ahead of perpetrators of cybercrimes, seeking to compromise the market.
“Let me congratulate all inductees here today. Your qualification and admission to practice as members of the Stock Exchange is indeed a great achievement, which will equally be of benefit to the capital market as a whole. I, therefore, welcome you to the brokerage community on behalf of the Securities and Exchange Commission.
“I wish to also acknowledge the roles of The Chartered Institute of Stockbrokers (CIS) and the Nigerian Stock Exchange (NSE) for their unyielding commitment to ensuring the continued growth of the market by producing young, dynamic and professional stockbrokers, who are admitted as Authorized Dealing Clerks. As you all know, continuous capacity building in our financial market is a very important part of the capital market development”.
Uduk expressed hope that the NSE and the CIS will keep on innovating for the benefit of the market and investors alike, as a means of deepening the capital market and positioning it as a catalyst for economic growth and development of our great nation.
Continuing, she said the commission is conscious of its “dual mandates of regulating and developing the Nigerian capital market for the continued and consistent growth of the Nigerian economy, which is why we have been pushing the initiatives which include the E-dividend Management Mandate System, Direct Cash Settlement and Multiple Application Regularization Initiatives, so as to properly educate your clients and increase the level of awareness in our market”.