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FMDA The Financial Market Dealers Association of Nigeria (FMDA) has kicked against a move by the Chartered Institute of Stockbrokers (CIS) and four other professional bodies to float the Chartered Institute of Securities and Investment of Nigeria (CISI) to control and regulate financial market operations in Nigeria.
The FMDA, created to develop financial market infrastructure, human capital and promote professional and ethical standards in treasury activities in Nigeria, distances itself and its members from the activities of the CISI Bill sponsors, which was created to destabilize the financial market and economy by assigning illegal powers to the CISI.
Other Institutes listed in the new move to create CISI include Institute of Capital Market Registrars (ICMR), the Fund Managers Association of Nigeria (FMAN), the Association of Issuing Houses of Nigeria (ASHON) and Association of Investment Advisers and Portfolio Managers (AIPM).
FMDA Secretary Mrs Mary Gbegbaje, says the CISI Bill seeks to repeal the current Chartered Institute of the Stockbrokers Act and be replaced with the Chartered Institute of Securities and Investment (CISI) Act, with the principal objective of determining standards of practice in the securities and investment business.
She noted the concerns the financial publics have about the intention and purpose of the Bill, adding that FMDA will not accede to signing the MoU from the Chartered Institute of Stock Brokers to distort and weaken securities and investment activities in the Nigerian Capital Market.
FMDA has informed the CIS through her governing council that the Treasury Management Certificate is issued by the Chartered Institute of Bankers of Nigeria (CIBN) to qualified candidates and remains the minimum requirement as stipulated by the Central Bank of Nigeria’s Competency Framework Document for anyone to be in the Treasury Department of any Bank in Nigeria.
In a statement, FMDA says “Ordinarily, if the coverage of the proposed Bill is limited to the activities of Stockbrokers, we would not have been concerned; however, the bill seeks to cover every aspect of Securities and Investment, including the thriving Fixed Income OTC markets which was nurtured by financial markets stakeholders”.
FMDA kicked against CIS’s intent to regulate all other Trade groups & Associations that are engaged in capital market activities. The Bill also makes it illegal for individuals and corporations to practice without the membership of the Institute.
It raised issues concerning the dissolution of the Chartered Institute of Stockbrokers, the definition of Securities and Investment Professionals, Election, Tenure and Qualification of the President and Vice Presidents of the Institute and Composition of the Governing Council of the CISI.
FMDA says it made some suggestions years back on areas requiring amendments after receiving legal opinion, guidance and counsel from the Legal Firm, Banwo & Ighodalo.
The CISI Bill was first sponsored by Senator Ganiyu Solomon(May 2007 to May 2011) for the Chartered Institute of Stockbrokers (CIS) is now before the National Assembly awaiting passage.
The FMDA had in march 2013, written to the Senate Committee on Capital Markets, imploring that the Bill be stepped down highlighting several threats it will have on financial system stability.
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