By Nkiruka Nnorom
FMDQ OTC Securities Exchange has launched an Investor Protection Fund, IPF, to boost and sustain investors’ confidence in the Nigerian capital market.
Following the establishment, Mrs. Titi Helen Lawani, representing the Pension Fund Operators Association of Nigeria, PenOp, was appointed the Chairperson of Board of Trustees, BoT, while Ms. Tokunbo Ajayi, representing the Association of Corporate Trustees emerged the Vice Chairperson of the Fund.
The Exchange, in a statement, said the establishment of the Fund was in compliance with the provisions of Part XIV of the Investments and Securities Act 2007 and represents a major milestone in the achievement of its mandate to provide a secure and credible platform supported by global best practices.
“The FMDQ-IPF was established for the purpose of compensating investors who suffer pecuniary losses arising from insolvency, bankruptcy, or negligence of a dealing member of the OTC Exchange, as well as defalcation committed by a dealing member or any of its directors, officers, employees, or representatives in relation to securities, money or any property entrusted to, received, or deemed received by the dealing member in the course of its capital market activities.
“Through this landmark achievement, the OTC Exchange is positioned to support the investor protection mandate of the Securities and Exchange Commission, which guided by the 10-year Nigerian Capital Market Master Plan, launched the National Investor Protection Fund (NIPF) in 2015 for the purpose of compensating investors whose losses are not covered under the Investor Protection Fund administered by securities exchanges,” the Exchange said.