By Peter Egwuatu

THE Chartered Institute of Stockbrokers(CIS), yesterday, declared that the recent ruling on the two erring stockbrokers was appropriate and in accordance with the Act establishing it.

President of the Institute, Mr.Mike Itegboje at a press briefing announcing the hosting of CIS 16th Annual Conference scheduled to hold in Abuja next month said the Institute will not tolerate any infractions from its members as this will serve as a deterrent to others who may still indulge in any form of mal practices.

While defending the action of CIS, he said, “ let me inform you that our Disciplinary Tribunal are members who have distinguished themselves. Some of the members are lawyers including a Senior Advocate of Nigeria (SAN) who know the law and rules of the capital market.

”Continuing, he said, “ for the CIS to order the stock brokers to buy back the shares and restore all the  accrued benefits which include bonuses and dividends where applicable within one month the day of the ruling is even magnanimous.

What of if they are expelled. That will bring more damage. The essence of sanctioning them is to prevent further infractions. Even for the brokers to be reprimanded in writing by the Registrar of the Institute is a big punishment.

It will be recalled that the CIS recently sanctioned two stockbrokers for selling the shares of their clients without authorisation.

According to the Disciplinary Tribunal of  CIS, the brokers,  Mr.Alex  Ogbebor and Mr. Samson Ailenbuade sometime between February 2006, in Lagos, used the machinery of Foresight Securities and Investment  Limited, to sell their clients’ shares without authorization.

Their clients Miss  Deborah Ololade Ariremako and Mr. Francis  Oladoyinbo Ariremako, had complained to the CIS that their 8,000 units of Guaranty Trust Bank shares, 800 units of Total Nigeria Plc shares, 1,214 units of UACN shares and 1,697 units  of First Bank of Nigeria Plc shares  respectively, were sold without their knowledge, consent or authority. The brokers were also said to have failed to verify a purported letter of authority/mandate sent by their clients before proceeding to sell the shares.

The CIS also said that the brokers paid the proceeds of the sale of  clients’ shares to a third party (Mrs. Bose Dinyo) instead of paying the right owners.  “As a result, you have committed an offence contrary and punishable under regulation 5(vi) and 6(a) (ii) of the members regulations and code of conduct (2005) and section 11 (i) (a) of the CIS Act 105 of 1992.

“That having seen and considered the evidence adduced and having heard the plea of not guilty to counts 1, 2, 3, the CIS finds Ogbebor and Ailenbuade guilty of all charges,” the CIS said.

Meanwhile, in his briefing on the forthcoming conference, the CIS President, said “ the theme of the conference is “ Strengthening Public Institutions: A critical factor for economic and political development; participants
are expected to proffer suggestions that will help to revamp and transform the economy.

Continuing, he said, there will be papers and discussion sessions on several topics including “ improving Market Liquidity through Product Diversification, Corporate Governance and promoting Ethical Business Dealings in Nigeria
and Restoring Investors Confidence through Strong Institutions”
According to Itegboje, Mr. Gabriel Onosode, will present key note address and speakers on the , session will include:

Director General of Securities and Exchange Commission, and the Nigerian Stock Exchange, Chairman of Senate and House of Representative Committees on Capital Market.

Other presenters and discussions include to players in the Nigerian capital market. A communique is expected to be issued at the end of the conference”.
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