“Stockbrokers and Dealers Operating Below Standards” – NSE

A report has revealed that only a quarter of stockbrokers and dealers on the Nigerian Stock Exchange, NSE, meet the Minimum Operating Standards, MoS, for the stock market.

The report indicated that 44 per cent of the stockbrokers fell below the minimum average; 31 per cent were average. Only 25 per cent of stockbroking firms are operating with the acceptable minimum standards.

The NSE inspected capital market firms between August and December, last year. The report indicated that 223 firms were inspected in 18 weeks, including 192 broker dealers, 30 brokers and one dealer.

The NSE rates firms along a scale of five for the MoS. Based on the MoS rating methodology, 54 firms were fully compliant and scored five points, representing 25 per cent of the population of dealing members inspected.

Sixty one firms scored between three and four points, representing 31 per cent, while 108 firms scored two points or less representing 44 per cent of dealing member firms.

With this discovery, the Exchange plans to do final assessment and follow-up inspection of the 169 firms that scored between zero and four points to review the deficient areas from the 2015 inspection in order to revalidate their level of compliance.

According to the report, the inspections are expected to commence next week’s Monday, February 29 and it will end on May 31, this year.

According to the report, the 169 firms scheduled for the MoS follow-up inspections will be expected to comply with the five requirements of the MoS for their registered function.

 

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