Oluropo Dada, 13th president and chairman of Council of Chartered Institute of Stockbrokers (CIS) has commended the National Pension Commission (PenCom) and Securities and Exchange Commission (SEC) for lifting the suspension on investments in commercial papers (CPs) by Licensed Pension Fund Administrators (LPFAs) where non-bank capital market operators act as Issuing and Paying Agents (IPAs).
In a circular, dated December 3, signed by PenCom’s Head of the Investment Supervision Department, Abdulqadir Dahiru, the suspension earlier imposed has been lifted following the updated rules developed by SEC and the proposed amendments to Rule 8 (Exemptions) for the regulation of commercial paper issuances by its regulated entities.
PenCom had last month directed all LPFAs to desist from such investment due to what it attributed to regulatory concerns on the roles of non-bank operators in Commercial Paper transaction. But the announcement drew flak from capital market operators who regarded it capable of undermining their activities and dampening investor confidence in the market .
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Commenting on the development, Dada advocated more collaboration among the stakeholders in the financial market,
“We at the CIS are very excited that the sanction was lifted through the timely intervention of our sector regulator, the Securities and Exchange Commission. This is a sign of what to expect from the leadership of the Securities and Exchange Commission. The leadership of the CIS will continue to advocate for greater collaboration among the regulators with mutual respect for each others.
“We will also continue to monitor the event as being unfolded and we re-emphasise the need to have Securities professionals on the Board and Management of all financial regulatory agencies in Nigeria, reminiscent of what we have in CBN, Ministry of Finance and Securities and Exchange Commission”,
Dada said .
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