Fidelity bank banner UBA banner
SEC sets aside N5bn for protection of investors’ fund

By News Express on 28/11/2015

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 2,113

The Securities and Exchange Commission (SEC) on Friday said that the sum of N5 billion had been earmarked for its National Investor Protection Fund (NIPF) to compensate investors for pecuniary losses.

Mr Mounir Gwarzo, the SEC Director-General, disclosed this at a post media briefing at the end of the third quarter meeting of the Capital Market Committee (CMC).

Gwarzo said that the fund would be for losses arising from the insolvency, bankruptcy or negligence by non-broker/dealer capital market operators.

NIPF is a trust scheme established to compensate investors whose losses are not covered under the Investors Protection Funds being administered by Securities Exchanges and Capital Trade Points.

“This is a very excellent feat taken by the commission with its little resources as it has not been funded by the government.”

The DG said that the N5 billion NIPF was set-aside solely by SEC, but said that going forward the whole market would contribute to the fund.

He said that the country had joined an elite group of a handful of countries with this kind of investor compensation scheme.

“While dozens of jurisdictions have functional investor protection funds run mainly by exchanges and their dealing members, Nigeria is now among only a few countries to have a National Investor Protection Fund.”

He said that investor confidence suffered since the 2008 financial crisis from which the Nigerian stock market lost 70 per cent of its value.

Gwarzo said that investor confidence and the prevailing macroeconomic environment had been a major impediment to market recovery.

He said that the fund was established to strengthen investor confidence because investors were equally critical for financial system stability.

“This is why the protection of investors is a cardinal goal of securities regulators world-wide.”

He said that the former board of the commission approved the establishment of the Fund and earmarked resources to serve as its take-off grant in 2011.

According to him, the NIPF was incorporated on March 9, 2012 as a company limited by guarantee.

“To give effect to the establishment of the Fund, the commission, on April 15, 2015, promulgated and approved rules to guide the implementation of the fund.”

The DG said that the commission would continue to pursue initiatives that would strengthen investor confidence to boost market liquidity. (NAN)

•Photo shows SEC DG, Mr Mounir Gwarzo.


Source News Express

Posted 28/11/2015 05:46:57 AM


Share on facebook Yahoo mail icon Gmail icon Share on Google+




You may also like...
2019: I’ll be fair and just to all...

Breaking News: Nigerian Airforce jet crashes (Plus photo...

Before we shred The ‘Abacha Document’, By Abdulrazaq...

Ijaws lick wounds as military invades communities in...

Spanish Embassy trains Immigration and NAPTIP officials on...

Reps probe Cameroon’s seizure of Nigerian island in...

End of an era as Boeing’s 747 jumbo...

BREAKING: Fidel Castro is dead •How he died...

Dickson calls for violence-free PDP Presidential Primary •Thanks...

FG, International Consortium sign Interim Phase Agreement with...

BREAKING NEWS: Court orders Obiano to stop parading...

FG assures Nigerians of improved electricity supply


Latest News N5.8bn Controversy: Osinbajo has questions to answer — Reps Troops arrest 19-year-old female suicide bomber trying to hit Maiduguri Nigeria needs 155,000 more doctors INEC vows to expose holders of illegal PVCs FG awards N206bn contract for main work of Second Niger Bridge Dasuki boycotts trial over FG’s disobedience of court orders Embattled Kogi workers smile, get salaries Reps adjourn sitting over faulty sound system Police, service provider probe fake social media posts Senate adjourns sitting over low turnout of lawmakers Buhari’s Social Investment Programme is largesse for supporters, cronies — Atiku/Obi Advocacy Group Impeachment of Ondo Speaker, Deputy irreversible — New Speaker


Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (419,849 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (389,393 views) Shameless Genevieve Nnaji exposes breasts in public (322,199 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (270,559 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (243,597 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (227,231 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (208,623 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (190,114 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (175,417 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (168,342 views) Lagos plane crash: Journalist releases victims’ names (164,793 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (151,738 views)


Zenith Zero Balance First Bank banner


Categories Advertorials (3) African Press Organisation (81) Art & Literature (72) Business & Economy (3,785) Business Verdict (54) Columnists (959) Complaints & Requests (94) Enterprise & Opportunities (208) Entertainment (565) Features (667) Global Business Monitor (309) International (2,675) Interview (166) Live Commentary (28) Love Matters (146) Maggie's Blog (32) News (40,496) Opinion (1,140) Pidgin (13) Politics (7,702) Religion (896) Sports (1,770) Stock Watch (35) AMA & Al Jazeera Global Update





APO Group Partner




GOCOP Accredited Member

GOCOP Accredited member



Africa Media Agency and Al Jazeera