Stockbrokers’ Institute, 5 others sign MoU to float new securities institute
By Peter Egwuatu
The Chartered Institute of Stockbrokers (CIS) in collaboration with five frontline professional bodies are warming up to float an umbrella body to be called the Chartered Institute of Securities and Investment of Nigeria , CISI to bring capital market professionals under common objectives.
As a prelude, the G-6 coalition, whose other members are the Institute of Capital Market Registrars (ICMR), the Financial Market Dealers Association of Nigeria (FMDA), the Fund Managers Association of Nigeria (FMAN), the Association of Issuing Houses of Nigeria (ASHON) and Association of Investment Advisers and Portfolio Managers (AIPM) at the weekend signed a Memorandum of Understanding (MoU) with ASHON’s Chairman, Chief Onyenwechukwu Ezeagu, as an observer at Stockbrokers House, Ikoyi at weekend.
“ We share common goals and there is a need for standardization to enhance our advocacy. The Association of Investment Advisers and Portfolio Managers (AIPM) subscribes to the ideals of the proposed Chartered Institute of Securities and Investment (CISI) 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 mobilized from the capital market. We implore the National Assembly to hasten the passage of the Bill in the overall interest of the economy “, said the President, AIPM, Prince AbimbolaOlashore.
The CISI Bill which is being sponsored by the Chairman, House Committee on Capital Market, Honourable Babangida Ibrahim seeks to replace the CIS Act 105 of 1992 that set up the Chartered Institute of Stockbrokers. As a demonstration of unity of purpose, the G-6 coalition are awaiting the passage into law soon.
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 collective goals.
The MOU also provides for establishment of a Governing Council, of between 25 and 30 members, a stakeholders’ committee, technical committee, governance committee and transition arrangement for harmonization of all members’ certifications. The Chief Executive Officer of the CISI does not have to be a member of the CISI, but membership of CISI may be an added advantage.
Commenting on the MoU, the President, CIS, Mr Olatunde Amolegbe commended the members for the foresight which will further globalize their professionalism. Amolegbe said the Bill had historical process and the MoU had strengthened the commitment of the members towards the same ideals.
Corroborating him, the President, Fund Managers Association of Nigeria (FMAN), Mrs Tope Omojokun, reiterated the essence of the MoU saying “we at FMAN identify with CISI Bill . All professionals operate with licenses and coming together shall promote standardization. Omojokun also urged the National Assembly to expedite action on passage of the Bill to enable the collaboration become effective.