NSE lists benefits of MOS for stockbrokers, dealers
The Head, Broker Dealer Regulation, NSE, Olufemi Shobanjo, while fielding questions to Journalists on the MOS and recapitalization of stockbroking firms, in Lagos on Tuesday, explained that the policy was developed in the year 2011 by the Capital Market Committee to forestall some of the challenges that led to the 2008 recession in the nation’s capital market.
The Exchange, according to him, has taken the position that it is imperative for broker dealers to build strong corporate and operational structures for their operations in order to mitigate risk and strengthen the market.
He explained that the decision was in line with efforts to augment long-term protection for investors and stakeholders in the capital market
The standards, according to Shobanjo would address the five broad areas of manpower and equipment; organisational structure and governance; effective processes; global competitiveness; and technology.
“It takes the view that healthy and well established firms are in a better position to manage and absorb any shocks that may be experienced in the capital market. This approach is in line with the regulatory tools employed globally to manage risks in the activities of capital market operators.
“ In view of the foregoing, the Exchange hereby recommends the following Guidelines on Minimum Standard Requirements for the Operations of Broker Dealers. These minimum standards also aim to nurture confidence in the capital market and enhance investor protection.
He explained that the Exchange had undergone tremendous transformation in the last few years and intended to extend these “forward-moving traits to the market operators.”
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