FMDQ Launches Investor Protection Fund, Appoints Lawani as Chair
By Dipo Olowookere
An Investor Protection Fund of the FMDQ OTC Securities Exchange (FMDQ) has formally been launched after the inaugural meeting of the Board of Trustees (BoT) of the fund.
The fund was inaugurated in compliance with the provisions of Part XIV of the Investment and Securities Act of 2007.
It is aimed to protect and compensate investors who suffer losses as a result of negligence of a dealing member of the exchange, insolvency, bankruptcy, defalcation committed by a dealing member or any of its directors, officers, employees, or representatives in relation to securities, money or any property entrusted to, received, or deemed received by the dealing member in the course of its capital market activities.
Business Post gathered that the total coverage and monetary size of the fund are yet to be determined by the board.
During the inaugural board meeting held on July 5, Mrs Titi Helen Lawani, representing the Pension Fund Operators Association of Nigeria emerged as Chairperson of the IPF.
Chosen as Vice Chairperson was Ms Tokunbo Ajayi, representing the Association of Corporate Trustees.
Members of the board include Mr Amos Azi, representing the Securities and Exchange Commission (SEC); Mr Bola Onadele Koko, representing FMDQ; Mr Joseph Mekiliuwa, representing the Central Securities Clearing System Plc; Mrs Taiwo Sonola, representing the Association of Assets Custodian of Nigeria; Mr Chuka Eseka serving as a person of proven integrity, knowledgeable in capital market matters; Mr Adedapo Olagunju, representing the Financial Markets Dealers Association; and Mr Anthony Idigbe (SAN), representing the Capital Market Solicitors Association.
In 2015, SEC launched the National Investor Protection Fund to compensate investors whose losses were not covered under the fund administered by licensed securities exchanges such as the FMDQ OTC.