SEC Warns Capital Market Operators against Unethical Practices

The Nigerian Securities and Exchange Commission (SEC) building is pictured in Abuja, Nigeria January 23, 2018. REUTERS/Afolabi Sotunde
Ndubuisi Francis in Abuja


The Securities and Exchange Commission (SEC) has warned newly qualified authorised dealing clerks of the Nigerian Stock Exchange (NSE) that the Commission has zero tolerance for unethical practices in the capital market, noting that steps  were being taken to ensure more effective regulatory oversight as well as advance investor protection and mitigate systemic risks.

SEC, therefore urged the inductees to abide by the highest principl ed standard expected in their profession

Speaking at their induction ceremony in Lagos, the acting SEC Director General, Ms. Mary Uduk, also enjoined them to maintain the integrity of their  profession and imbibe the culture of compliance to rules and regulations, as well as transparency, as they carry on their activities in the market.

In a statement, SEC’s Head, Corporate Communications, Efe Ebelo said Uduk,who was represented by the Zonal Head, Lagos office of the Commission, Mr. Stephen Falomo as describing the  induction ceremony for the freshly qualified professionals as a welcome development, adding that they have, by their exemplary performance during their Automated Trading System (ATS) training at the NSE , secured their place in the stock broking profession.

She said “This ceremony marks the final point at which the inductees become fully fledged dealing members of the Nigerian Stock Exchange, a position of great trust; because now you will be handling investments for individual and corporate investors and this you must do with utmost care and highest standards of integrity and ethical practice to forestall any breach of trust.

“You must also be determined to bring positive changes into the market as you launch your careers and challenge the status quo in the areas of capacity building and innovativeness, while bringing fresh and innovative ideas into product development, as well as efficiency in service delivery to the investors.

Uduk said the use of ICT has been fully integrated into financial services and as such Financial Technology (Fintech) and Regulatory Technology (Regtech) are trending, having been embraced by both the operators and the investors as ways to further enhance the growth and expansion of business in addition to regulatory and compliance issues.


She therefore urged the newly inducted members to ensure that they  all get a good grounding on the relevant technological advancement necessary to ensure that they can cope with the pace in today’s market, while staying ahead of perpetrators of cyber crimes, who may attempt to compromise the market. 

“Let me congratulate all inductees here today. Your qualification and admission to practice as members of the Stock Exchange is indeed a great achievement, which will equally be of benefit to the capital market as a whole. I therefore welcome you to the brokerage community on behalf of the Securities and Exchange Commission”, she said.