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FMDQ affirms commitment to investor protection, establishes IPF

The FMDQ OTC has demonstrated commitment to protecting investors in the fixed income with the establishment of investor’s protection fund, trailing the path of the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE).

In compliance with the provisions of Part XIV of the Investments and Securities Act 2007, FMDQ OTC Securities Exchange has formally established its Investor Protection Fund.

(FMDQ-IPF or the Fund), following the inaugural meeting of the Board of Trustees (BoT) of the Fund which was held on July 5, 2017.
Daily Times Nigeria recalls that the Securities and Exchange Commission (SEC) in 2015 expanded investor’s security when it launched N5billion investors Protection Fund (IPF).

Also, the NSE IPF was established in line with the provisions of part XIV of the Investment and Securities Act (ISA) 2007, (CAP 124, LFN, 2004) with about N625 million in its accounts.

Meanwhile, the inauguration of the Fund and the BoT are a significant milestone in the achievement of the OTC Exchange’s mandate to provide a secure and credible platform supported by global best practices, and serves as a catalyst for sustaining investor confidence in the Nigerian financial markets.

The FMDQ-IPF was established for the purpose of compensating investors who suffer pecuniary losses arising from insolvency, bankruptcy, or negligence of a Dealing Member of the OTC Exchange, as well as defalcation committed by a Dealing Member or any of its directors, officers, employees, or representatives in relation to securities, money or any property entrusted to, received, or deemed received by the Dealing Member in the course of its capital market activities.

At this highly interactive meeting, the members of the BoT deliberated on its leadership and other modalities towards the successful achievement of the mandate of the Fund.

Mrs. Titi Helen Lawani representing the Pension Fund Operators Association of Nigeria and Ms. Tokunbo Ajayi, representing the Association of Corporate Trustees, emerged as the Chairperson and Vice Chairperson, respectively, following a unanimous resolution that both, being representatives of the investors and trustees, respectively, possess the requisite experience to provide the necessary leadership to ensure that the Fund is adequately governed and that the best interests of the investors are appropriately protected.

Other members of the BoT are Mr. Chuka Eseka serving as a person of proven integrity, knowledgeable in capital market matters;
Mr. Adedapo Olagunju, representing the Financial Markets Dealers’ Association; Mr. Joseph Mekiliuwa, representing the Central Securities Clearing System PLC; Mr. Amos Azi, representing the Securities and Exchange Commission; Chief Anthony Idigbe, SAN, representing the Capital Market Solicitors Association;

Also, were, Mrs. Taiwo Sonola, representing the Association of Assets Custodian of Nigeria; and Mr. Bola Onadele. Koko, representing FMDQ.

FMDQ, through the collaborative efforts of its Management and the BoT of the Fund, is committed to its mandate on transparency, governance, market oversight, credibility and ultimately to preserve the integrity of the Nigerian capital markets.

Through this landmark achievement, the OTC Exchange is positioned to support the investor protection mandate of the Securities and Exchange Commission, which guided by the 10-year Nigerian Capital Market Master Plan, launched the National Investor Protection Fund (NIPF) in 2015 for the purpose of compensating investors whose losses are not covered under the Investor Protection Fund administered by securities exchanges.

However, effort by Daily Times Nigeria to get the fund’s value was not successful, as an expected response to the mail to the FMDQ requesting for the value and its investment module, was still being awaited as at the time of filling this report.

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