NAN – The Securities and Exchange Commission (SEC) says all operators in the nation’s capital market will be represented on the board of its proposed Investor Protection Fund (IPF).
Mr Mounir Gwarzo, SEC Director-General, told the News Agency of Nigeria (NAN) on Tuesday in Lagos.
Gwarzo said that the IPF board membership would include staff of the commission and all other players in the market.
“It’s not going to be a SEC fund even though it is funded 100 per cent by SEC. The board membership will comprise SEC and the entire market,” he said.
Gwarzo said that the commission was perfecting arrangement to ensure smooth take-off of the fund with payment of claims to qualified investors.
He said that the commission would commence payment of investors’ claims at the conclusion of the ongoing verification exercise.
“We will not make any disbursement until we finish verification. We want to do the entire verification because we don’t want to start making payment and also do verification,” Gwarzo said.
According to him, the cash outlay would be decided at the commencement of payments.
He said that the commission would in the next couple of days stop acceptance of claims to ensure speedy commencement of the fund in the market.
“We have drawn a line and very soon we will stop accepting any claim,” Gwarzo said.
The director-general, who declined to disclosed the fund’s initial take off figure, said that the size of the fund would be determined when the board was constituted.
NAN reports that IPF was established to give investors a statutory avenue for mitigating losses they suffer as a result of bankruptcy.
It will also cover losses arising from insolvency, negligence or wrongdoing by dealing members.
