FMDQ launches Investor Protection Fund, holds inaugural meeting of Board of Trustees

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In compliance with the provisions of Part XIV of the Investments and Securities Act 2007, FMDQ OTC Securities Exchange (FMDQ or the OTC Exchange) has formally established its Investor Protection Fund (FMDQ-IPF or the Fund), following the inaugural meeting of the Board of Trustees (BoT) of the Fund which was held on July 5, 2017. The launch of the Fund and inauguration of the BoT is a significant milestone in the achievement of the OTC Exchange’s mandate to provide a secure and credible platform supported by global best practices, and serves as a catalyst for sustaining investor confidence in the Nigerian financial markets.

The FMDQ-IPF was established for the purpose of compensating investors who suffer pecuniary losses arising from insolvency, bankruptcy, or negligence of a Dealing Member of the OTC Exchange, as well as 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.

At this highly interactive meeting, the members of the BoT deliberated on its leadership and other modalities towards the successful achievement of the mandate of the Fund. 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, respectively, following a unanimous resolution that both, being representatives of the investors and trustees, respectively, possess the requisite experience to provide the necessary leadership to ensure that the Fund is adequately governed and that the best interests of the investors are appropriately protected. Other members of the BoT are Mr. Chuka Eseka serving as a person of proven integrity, knowledgeable in capital market matters; Mr. Adedapo Olagunju, representing the Financial Markets Dealers Association; Mr. Joseph Mekiliuwa, representing the Central Securities Clearing System PLC; Mr. Amos Azi, representing the Securities and Exchange Commission; Chief Anthony Idigbe, SAN, representing the Capital Market Solicitors Association; Mrs. Taiwo Sonola, representing the Association of Assets Custodian of Nigeria; and Mr. Bola Onadele. Koko, representing FMDQ.

FMDQ, through the collaborative efforts of its Management and the BoT of the Fund, is committed to its mandate to drive transparency, governance, market oversight, credibility and ultimately to preserve the integrity of the Nigerian capital markets. 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, launched the National Investor Protection Fund (NIPF) in 2015 for the purpose of compensating investors whose losses are not covered under the Investor Protection Fund administered by securities exchanges.

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Godwin Okafor is a financial journalist, Internet Social Entrepreneur and the Founder Naija247news Media Ltd He has over 16 experiences in journalism, which cuts across traditional and digital media. He started his journalism career in Business Day, Where he was a senior editorial graphic artist, before he left to start Naija247news, An Online Financial Newspaper in 2010. He has won series of awards and he is the chairman of Emmerich Resources Limited, the publisher of Naija247news.com and also sits on the board of Students In Business Awards, (SIBA).

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