The Governing Council of the Chartered Institute of Stockbrokers (CIS) has approved that members who are indebted to the institute in terms of dues and other fees for over five years be removed from the Register of Stockbrokers, while those whose indebtedness is below five years should be suspended.
According to the institute, this is coming after earlier deploying moral suasion and debt relief without positive result.
CIS, in a statement signed by its Registrar and Chief Executive, Mr. Adedeji Ajadi, explained that the council had taken decision on defaulting stockbrokers since late last year but implementation was put on hold with the the lockdown following COVID-19 pandemic.
CIS said the defaulters had been given a grace of three months, ending in June this year to regularise their accounts or face penalty.
“The Governing Council of the Chartered Institute of Stockbrokers, at their meeting of Wednesday 11th December, 2019 approved the delisting of members, who have been indebted to the Institute regarding payment of annual dues and other applicable fees for over five years, from the Register of Members, effective 31st of March, 2020. However, due to the disruption occasioned by the COVD-19!pandemic, council has given a grace period of three additional months from the date announced earlier for affected members to pay up their outstanding balances and bring themselves up to date on or before July 1, 2020.
“This action is pursuant to section 5 (6) (c) of CIS Act 105 of 1992, which provides for the Registrar to record the names of members of the Institute who are in default for more than six months in the payment of annual subscriptions, and to take such action in relation thereto (including removal of the names of defaulters from the register) as the Council may direct or require,” the statement said.
Before now, the CIS has unfolded two key tactics as part of the interim measures to boost income stream and grow membership base in order to strengthen its operation.
The institute approved recovery strategy for the huge outstanding membership annual dues and other applicable fees which runs into millions of Naira with graduated sanctions for defaulters.
Also, early this month, under the new leadership of Mr. Olatunde Amolegbe, the institute slashed the registration fee for the professional examination for September 2020 Diet by 20 per cent to apparently to cushion the effects of COVID-19 pandemic on purchasing power of candidates.