By Olaleke ASHAFA
The Securities and Exchange Commission (SEC) has advised retail
investors in the capital market to invest in Collective Investment Schemes and
Mutual Funds to help reduce risk.
The Acting Director-General of SEC, Ms Mary Uduk, said this in a statement on
Wednesday in Abuja.
Uduk said such investments were managed by professionals and they help
investors to invest in various asset classes to minimise risk.
She however reiterated the commission’s commitment to protect investors through
various initiatives.
She said: “The Commission has put in place a number of initiatives to protect
investors as well as boost their confidence.
“These includes the e-dividend mandate Management System, Direct Cash
Settlement, we set up a committee on identity management in the Nigerian
Capital Market Regularisation of Multiple Subscription and Complaints
Management Framework.
“We protect investors through the National Investors Protection Fund (NIPF),
Risk Based Supervision and the Complaints Management Framework.
“We want investors to take ownership of their investments; they have to be able
to monitor their investments, attend Annual General Meetings as well as read
the annual reports sent out to them.”
According to Uduk, the commission is working with other major stakeholders to
set up a committee that will look into and proffer solutions to problems around
identity management in the Nigerian capital market.
“For instance, to boost the e-dividend mandate and Direct Cash Settlement
initiatives, we are engaging the Nigeria Inter-Bank Settlement System (NIBSS)
to facilitate identity and account validation to enhance market processes,” she
said.
She said the electronic distribution of annual accounts by public companies to
shareholders had continued to record tremendous success, as shareholders had
accepted the new initiative.
She said the SEC and other stakeholders had continued sensitisation to further
enlighten shareholders on the benefits of the initiative.
On the need to grow the market for trading in securities on unlisted public
companies, Uduk said the SEC was collaborating with relevant stakeholders to
assist public companies yet to register their securities to do so without much
difficulty.
The acting director-general also said innovations in financial technology had made
possible the potential of using digital tools to make financial services
available to a wider range of consumers and enterprises.
She said innovative technology had also promoted financial inclusion and the
affordability of financial services in the country.
“A financially inclusive society will provide increased access to finance,
especially for women, help support sustainable growth and will create a million
more jobs.
“The gains of having a more inclusive financial system are enormous, as it
helps broaden financial markets and make policies more effective.
“These initiatives continue to highlight and promote developments and trends in
the Nigerian capital market and drive financial inclusion aimed at reducing
adult exclusion from financial services,” the statement read in part.
