12 stockbroking firms on NSE fail MOS at mid-January

The Nigerian Stock Exchange (NSE) has disclosed that 12 dealing member firms failed to meet Minimum Operating Standard (MOS) as t 15th January, 2018.

The exchange further disclosed that 10 firms have run foul of the MOS by sustaining operation without compliance officers, while three others have been suspended for operating without CEO/MD.

According to the x-compliance report of the NSE, as at January 16th, 2018, the Exchange disclosed that one dealing member firm has also been deregistered.

The dealing member firms that have failed to meet compliance with the minimum operating standard of the NSE as at January 15, 2018, disclosed in the x-compliance report and currently tagged inactive by the bourse , are , Clearview Investments & Securities Ltd , Maven Asset Management Limited and Best link Investment Limited. Also include, Cadington Securities Limited, GMT Securities & Asset Management Limited, Mercov Securities Limited and Resano Securities Limited.

Also Stanwal Securities Limited, Transafrica Financial Services Limited, UIDC Securities Limited, Summa Guaranty & Trust Co. Limited and Yuderb Investments & Securities Limited also currently tagged inactive for failure to meet the MOS.

The report by the NSE, further disclosed the 10 dealing member firms that sustained operation without compliance officers as at the period under consideration as, Cadington Securities Limited, CEB Securities Limited and GMT Securities & Asset Management Limited.

Also, Mact Securities Limited, Mercov Securities Limited, ML Securities Limited and Monument Securities & Finance Limited faulted the rule, while Northbridge Investment & Trust Limited, Professional Stockbrokers Limited and Profund Securities Limited also faces the sanction for operating without compliance officers.

According to the NSE, the MOS was established to among other things, improve Corporate Governance, strengthen and deepen the market and build a world class market. Also, to restore investors’ confidence and create wealth, protect investors as well as secure a sustainable market as well as to reduce the cost of capital formation and increase economic growth. “In line with efforts to augment long-term protection for investors and stakeholders in the capital market,

The Nigerian Stock Exchange (NSE) set Minimum Operating Standards (MOS) for its Dealing Members. MOS, the NSE said ‘ will cater for all three classes of Dealing Members (broker dealers, brokers and dealers) and address the five broad areas of manpower and equipment, organizational structure and governance, effective processes, global competitiveness and technology.

The firms operating without MD/CEOs within the same period were identified by the NSE x-compliance report as 15th January, 2018, are Cadington Securities Limited, Northbridge Investment & Trust Limited and PML Securities Company Limited.