Chartered Institute of Stockbrokers (CIS) and Association of Securities Dealing Houses of Nigeria (ASHON), at the weekend presented to the National Assembly, the rationale and benefits of passing the Bill that will transform CIS to Chartered Institute for Securities and Investment to enable it drive the registration of all professionals in the securities business as against the current duplication of roles among different professional bodies.
Similarly, ASHON has proposed inclusion of Stockbrokers on the Board of the Securities and Exchange Commission (SEC) as core operators in the Nigerian Capital Market.
A statement from the CIS indicates the need to properly define the scope of functions of the Institute and the securities that a Stockbroker can deal in.
“Hence, this CISIN Bill seeks to properly define the scope of a Stockbroker, which includes securities dealing, fund and portfolio management, asset management, investment management, corporate finance and other related fields.
“The need for a professional body in the Nigerian capital market empowered by law to regulate the training and certification of core capital market operators cannot be overemphasized. This would prevent the unnecessary proliferation of professional bodies performing similar roles, ensure standardization of training and certification, and check the influx of charlatans and quacks as operators in the Capital Market, which will lead to the continual development of our market. Weak controls in this area had impacted the market negatively and among other factors, resulted in the near collapse of the capital market a few years ago.
“Currently, there is an existing Chartered Institute of Stockbrokers Act No. 105 of 1992, which recognizes the CIS as the only body of professionals legally empowered to train and certify professionals in Securities and Investments, which is an extension of the functions conferred on Stockbrokers by the Lagos Stock Exchange Act of 1961, which was later renamed The Nigerian Stock Exchange.
“The training received by CIS members sufficiently equips them to operate as professionals in stockbroking, securities and investment, fund and portfolio management, asset management, investment management, and other related fields. Over the years, Stockbrokers have operated in all the segments of the capital market including securities issuance, trading, dealing, custody, and trusteeship,“ according to the statement.
The Institute’s position was presented by its President, Oluwole Adeosun while ASHON’s own was handled by its Chairman, Sam Onukwue.