The Securities and Exchange Commission (SEC) has given its endorsement to the Code of Conduct designed for Approved Individuals of Trading License Holders. This Code mandates that Approved Individuals maintain the highest levels of professionalism, integrity, and equity when engaging with clients, potential clients, employers, staff, professional peers, and others. Its aim is to bolster public trust in the Nigerian Capital Market.
Thank you for reading this post, don't forget to subscribe!The Code of Conduct for Approved Individuals of Trading License Holders seeks to establish acceptable benchmarks of conduct and bolster ethical behavior among Approved Individuals associated with Trading License Holder Firms (Trading License Holders).
The Code emphasizes that Approved Individuals must perform their professional duties with reasonable competence, care, caution, and diligence, aligning with the latest best practices within the industry. Moreover, they are expected to adhere to elevated ethical, professional, and technical norms in line with their roles as Approved Individuals.
Following this approval, it is anticipated that the “Approved Individuals of Trading License Holders,” when conducting business activities related to trading in securities or other investment products, will consistently operate according to the tenets of best practices and adhere to all pertinent laws and regulations governing the capital market.
A key stipulation within the Code mandates that the Approved Individuals of Trading License Holders must develop and uphold policies and procedures that ensure their business practices comply with the standards outlined in this Code, in addition to meeting all applicable legal and regulatory requisites.
Another significant facet of the endorsed Code entails that the Approved Individuals of Trading License Holders should apply the principles of Prudence and Care, Fair Dealing, and Preservation of Confidentiality when dealing with their clients.
The Nigeria Exchange Limited Council initially approved the draft Rules during its Retreat held from July 24th to 26th, 2016. The Securities and Exchange Commission (SEC) subsequently called for an extensive review of the Code, leading to the submission of a revised version to the Commission on November 11th, 2020. Finally, the Code received SEC’s approval on August 16th, 2023.
