Home Business FMDQ OTC Securities launches Investor Protection Fund, appoints BoT

FMDQ OTC Securities launches Investor Protection Fund, appoints BoT

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FMDQ OTC Securities Exchange has formally launched its Investor Protection Fund (FMDQ-IPF) in compliance with the provisions of the Investments and Securities Act (ISA) 2007.

The company said in a statement in Lagos that the inaugural meeting of the fund Board of Trustees (BoT) was held on July 5, 2017.

The News Agency of Nigeria (NAN) reports that IPF is a statutory fund established pursuant to the provisions of Part XIV of the ISA to compensate investors who suffer pecuniary loss in the market.

The company said that the launch of the fund and inauguration of the BoT was a significant milestone in the achievement of the OTC exchange’s mandate to provide a secure and credible platform supported by global best practices.

It said that the fund would serve as a catalyst for sustaining investor confidence in the Nigerian financial market.

The company said that the FMDQ-IPF was established for the purpose of compensating investors who suffered pecuniary losses arising from insolvency, bankruptcy or negligence of a dealing member of the OTC Exchange.

It said that the fund would take care of defalcation committed by a dealing member or any of its directors, officers, employees, or representatives in relation to securities, money or any property entrusted to, received, or deemed received by the dealing member in the course of its capital market activities.

The company said that members of the BoT, at an interactive meeting, deliberated on its leadership and other modalities toward the successful achievement of the mandate of the fund.

It said that FMDQ, through the collaboration of its management and the fund was committed to its mandate to drive transparency, governance, market oversight, credibility and ultimately to preserve the market integrity.

“Through this landmark achievement, the OTC Exchange is positioned to support the investor protection mandate of the Securities and Exchange Commission which guided by the 10-year Nigerian Capital Market Master Plan.”

The company said that the National Investor Protection Fund (NIPF) was launched in 2015 for the purpose of compensating investors whose losses were not covered under the Investor Protection Fund administered by securities exchanges.

It said that Mrs Titi Helen Lawani, representing the Pension Fund Operators Association of Nigeria and Ms Tokunbo Ajayi, representing the
Association of Corporate Trustees, emerged as Chairperson and Vice Chairperson of the fund.

NAN