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Nigerian stockbrokers should aim to operate globally – Expert

By on July 1, 2015

A United States-based stockbroker, Mr. Tayo Shebanjo, has urged Nigerian stockbrokers to develop and equip themselves to operate at the highest level by adopting global best practices, among other things, in their activities.

Shebanjo, who operated in the Nigerian capital market before moving to the US for further certification and to operate as a broker, said this in Lagos during a programme organised by the Chartered Institute of Stockbrokers and Capital Bancorp Plc, a statement by the CIS said.

According to him, it is very important for stockbrokers in the country to continually invest in knowledge, stay in touch with trends in the markets, ensure value proposition for clients and operate with the highest level of integrity at all times.

Shebanjo, who spoke about his early years as a dealing clerk in Nigeria and admitted that the country’s stock market was the launch pad for his career, said the country’s capital market was not performing badly and that it had a bright future.

He stressed that professional education was very important, urging operators to take a cue from the US where a broker was required to start the certification process all over after being out of the market for two years.

He added that apart from the stockbroking house, in the US, a broker would be held liable for giving the wrong advice to a client with the broker’s supervisor also having questions to answer.

Commenting on margin trading, which was a major problem in the market in the past, Shebanjo said he did not foresee a potential ‘time bomb’ in the market, but stressed that care should be taken when it comes to derivatives.

The statement said the event was attended by key stakeholders in the market, including the Acting President, CIS, Mr. Oluwaseyi Abe; and past presidents of the institute, Henry Olayemi and Tola Mobolurin.

On the efforts of the CIS to ensure compliance with global standards, one of the institute’s top official, Mr. Chukwudi Nga, explained that the institute had been working seriously to attract young Nigerians into the securities and investment profession.

In line with the goal, he said the CIS had introduced a Professional Diploma in Securities and Investment for secondary school leavers.

Nga explained that the successful acquisition of the diploma would qualify the holder to sit the final part of the institute’s professional examination.

He added that the CIS had also introduced a recertification examination for the institute’s graduates who had not become associates three years after graduation.

Some of the speakers at the event noted that the CIS needed increased funding to carry out its capacity building and other roles effectively.