Amaka Obiefuna.

Mounir Gwarzo who is the Director –General of the Securities and Exchange Commission (SEC), is assuring the commitments of the commission to promote the development of Commodity Exchanges in the country.

H was speaking while receiving the New Exco of the Association of Stock broking Houses of Nigeria(ASHON) in Abuja, Mr. Gwarzo said the commission was willing to support the Lagos Commodities & Futures Exchange being midwived by ASHON.
On the suspension of some of their  members by the NSE & SEC on account of deficiency in Minimum Operating Standard (MOS) compliance as well as diminution in value of minimum capital requirement, the DG insisted on a three months grace period, aligning with their argument that stock brokers carry equities in their balance sheet and prices of equities have gone down thus affecting their capital the DG insisted on a 3 months grace period.

The Group noted with concern the proposed amendment of Rule 56(1) – Function of Brokers(Harmonization of Registration requirement for incidental functions). The development will preclude brokers from providing Investment advice to their clients/Public.
ASHON, while acknowledging not knowing the thinking behind the proposed amendment, solicited for the reconsideration of the proposal. The call is based on the backdrop of the so-called value addition provided by brokers/ dealers in providing investment advice to their clients. They argued that a lot of stock broking houses had well-established research desks that not only help to broadcast market information on a continuous basis but also carry out in-depth analysis and provide opinions to complex financial issues to their clients.
The Association also expressed their dismay on the Federal Government’s sole reliance and emphasis on monetary policy for macroeconomic management to the detriment of the capital market. The association accepted to look at the Investment and Securities Tribunal funding proposal being championed by SEC and NSE.