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Chartered Institute of Stockbrokers set to sanction defaulting members

The  Chartered Institute of Stockbrokers (CIS) has unfolded two key tactics as part of the interim measures to boost  income stream and grow  membership base in order to strengthen its operation. This comes as uncertainties on  the global business environment thickens. 
The Institute’s Governing Council,  had late last year,  approved recovery strategy for the huge  outstanding membership annual dues and other applicable fees which runs into millions of Naira with graduated sanctions for  defaulters.
But early this month, under the new leadership of Olatunde Amolegbe, the Institute slashed the Registration Fee for the Professional Examination for September 2020 Diet by 20 percent to apparently to cushion the effects of COVID-19 pandemic on purchasing power of candidates.
The Governing Council has swiftly endorsed   suspension of  members who are in  default below five  years and  removal from the Register of Stockbrokers, those whose indebtedness is in excess of five years. The Institute is believed to have earlier deployed moral suasion and debt relief to no avail.
Due to lockdown,  occasioned by COVID-19, pandemic, the  Institute has  postponed  its  March Diet. However, it has announced that the diet shall hold five weeks immediately after total lifting of lockdown.Already, it has opened the Examination Portal to enable candidates register but  deferred  the commencement of its new Certification Scheme to Associate Members and  reviewed  syllabus till March, next year.
A statement signed by the Registrar and Chief Executive, Adedeji Ajadi, explained  that the decision to the Governing Council had taken decision on  defaulting Stockbrokers since late last year but implementation was put on hold with the the lockdown following  COVID-19 pandemic.
According to the statement, defaulters have a grace of three months, ending in March  to regularize their accounts or face penalty.
“The Governing Council of the Chartered Institute of Stockbrokers, at their meeting of Wednesday 11th December, 2019 approved the delisting of members, who have been indebted to the Institute regarding payment of annual dues and other applicable fees for over 5 years, from the Register of Members, effective 31st of March, 2020.
“However, due to the disruption occasioned by the COVD-19!pandemic, Council has given a grace period of three additional months from the date announced earlier for affected members to pay up their outstanding balances and bring themselves up to date on or before July 1, 2020.
“ This action is pursuant to section 5 (6) (c) of CIS Act 105 of 1992, which provides for the Registrar to record the names of members of the Institute who are in default for more than six months in the payment of annual subscriptions, and to take such action in relation thereto (including removal of the names of defaulters from the register) as the Council may direct or require.
“ Members who are in default of annual dues and other applicable fees for more than 5 years, will be removed (delisted) from the Register of Members. Such members can only be readmitted upon fulfilling the following conditions: Completion of a re-admission form, payment of all outstanding annual dues and other applicable fees, payment of re-admission fee of N100,000 only.
“ Defaulting members who owe annual dues and other applicable fees for less than 5 years, up to the 31st of December 2019 will be suspended from the Register of Members. Such members can only be re-admitted upon payment of all outstanding dues and applicable fees, and an administrative charge of N20, 000.00. Members of the Institute and the general public are enjoined to visit our website or contact the Registrar & Chief Executive regularly to verify the names of bona fide members of the Institute at any point in time.”, the statement said.

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