By Goddy Egene
The Chartered Institute of Stockbrokers (CIS) and three other professional bodies have signed a Memorandum of Understanding (MoU) to establish the Chartered Institute of Securities and Investment Management (CISIM). The move is expected to bring securities dealers and investment managers in Nigeria under one umbrella.
The CISIM’s Bill, which is currently with the National Assembly, would replace the Chartered Institute of Stockbrokers Act 105 of 1992 when passed into law.
The three other professional bodies that signed the MoU, are the Association of Investment Advisers and Portfolio Managers (AIPM),The Fund Managers Association of Nigeria (FMAN), Association of Issuing Houses of Nigeria (AIHN) with ASHON’s chairman, Chief Onyenwechukwu Ezeagu, as an observer.
The Chartered Institute of Stockbrokers Act 105 of 1992 , which established the CIS provides that individual operators that deal in securities, including stocks, treasury bills, bonds, commodities etc shall be trained and certified by the Institute. However, some individuals deal in securities without any form of certification and requisite training. Therefore, the CISIM Bill, when passed into law, will bring capital market professionals under a common objective without encroaching on one another’s business, make regulation easier, and enhance global competitiveness.
Commenting on the MoU, President, AIPM, Abimbola Olashore, said: “ We share common goals and there is a need for standardisation to enhance our advocacy. The AIPM subscribes to the ideals of the proposed CISIM in Nigeria.
“Our collaboration will bring about rapid development of the entire financial system. Nigeria is in dire need of funds for infrastructure development. Substantial part of the fund can be mobilised from the capital market. We implore the National Assembly to hasten the passage of the Bill in the overall interest of the economy .”
On his part, the President, CIS, Olatunde Amolegbe, who said the proposed bill was nothing unusual, commended the professional bodies that signed the MoU for sincerity and unity of purpose.
“The Securities and Exchange Commission (SEC) and The Nigerian Stock Exchange ( NSE), the apex regulator and self-regulatory organisation (SRO) respectively, regulate stockbrokers but the ISA provides for individual operators that deal in securities to be certified by the Institute while their organisations are regulated by SEC and the NSE and these are two different roles,” he said.
Also speaking, the President, FMAN, Mrs. Tope Omojokun, said: “We at FMAN identify with CISIM Bill . All professionals operate with licences and coming together shall promote standardisation.”
By the MoU, the collaboration is not intended to impose legally enforceable obligations against the individual members and does not include financial or other commitment. However, parties shall be committed to using their best efforts to achieve the collective goals.