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Fund managers urged to comply with new capital requirement

By on July 21, 2015

The President, Fund Managers Association of Nigeria (FMAN), Mr. Michael Oyebola, has urged member firms of the association to  comply with the new minimum capital set by the Securities and Exchange Commission (SEC) before the September 30, 2015 deadline. As at May 30, about  68 out of the 91 fund managers  were said to have complied with the new capital base.

However, speaking at a stakeholders forum in Lagos last Thursday, Oyebola urged  fund managing firms, which have not  recapitalised to do so, saying  there is not likely to be an extension of the deadline by SEC.

Oyebola also urged member firms to commence the practice of asset segregation, which is to separate its asset from clients asset before SEC begins to enforce compliance. He also disclosed  that FMAN is striving to become a self-regulatory organisation with power to handle compliance, complaint and standardisation and issues between its members and the public respectively.

According to him,  FMAN  is  developing a customised platform for mutual funds distribution that would operate as an open architecture platform that will enable members to distribute their mutual funds in more cost efficient means.

“With the approval of the acceptance of voters card as a know-your-customer (KYC) document, effort are in top gear to put together a mobile money platform that will address the various need of member firms,” he said.

Oyebola added that  asset managers codes were launched in conjunction with the Chartered Financial Analyst (CFA) Society of Nigeria,  and Pension Fund Operators Association of Nigeria (PENOP)- to include general principles of conduct and asset managers code of conduct.

“Some of its provisions in relation to asset managers responsibilities to clients include, to act in a professional or  ethical manner at all times, to act for the benefit of the client, to act with independence and objectivity, to act with skill, competence and diligence, to communicate with clients in a timely and accurate manner and to uphold the applicable rules governing capital markets,” he said.

According to him, SEC will  push for all members of FMAN to adopt the codes of conduct.

In her presentation titled ‘Global Investment Performance Standards (GIPS),’  President CFA Society Nigeria, Mrs. Sade Odunaiya, the standards is  a creation of the CFA  which oversaw the content creation of its framework due to the absence of a benchmark for the calculation, and  presentation of firms investment performance history.

According to her,  GIPS was developed as a voluntary set of standard because of lack of reporting consistency and absence of industry wide comparability. Odunaiya  added that the current objective is to prepare and get Nigeria listed among over 30 developed and developing nations of the world who have met the GIPS compliance and adherence standards.

“Currently the CFA Society of Nigeria, PENOP and FMAN are the members of the GIPS sponsoring body in Nigeria known as Nigeria Investment Promotion Commission (NIPC). Members of NIPC intend to invite SEC and PENCOM to serve on its board on observer status. The CFA Society of Nigeria proposes a four year period for full adoption of GIPS by players in the capital market,” she said.

 

[ThisDay]