By Aduragbemi Omiyale
Efforts would be made to continue to protect the interests of investors in the Nigerian capital market, the Board of Trustees (BoT) of the Investors’ Protection Fund (IPF) has assured.
In a statement, the board stated that this is one of the reasons it recently approved an increment in the maximum compensation sum to investors who have suffered pecuniary losses from N400,000 to N500,000.
The increase, according to the IPF, became effective from November 18, 2021, though it does not apply to claims made to the IPF before the approval of the increase.
In the statement, the board explained that it took this action after due consultation, assessment of the limited resources of the IPF and the volume of claims pending against the IPF as well as the prevailing circumstances in the capital market in determining the increase in the maximum amount of compensation payable in accordance with Rule 26.16 (a) & (c): Amount of Compensation, Rulebook of the Nigerian Exchange (NGX) Limited 2015 (Investors’ Protection Fund Rules) as amended.
The law provides that, “The maximum compensation payable to an investor who has suffered a loss shall be an amount that is determined by the board from a written policy from time to time; and where the loss is less than the maximum amount fixed by the board at any given time, the investor may be paid the full amount of the loss, less any amount or value of all monies or other benefits received or receivable by him from a source other than the Fund in reduction of the loss.”
“Notwithstanding the above, the amount of compensation may be reviewed by the board on a biennial basis or as otherwise agreed by the board as the need arises from time to time.
“In determining the maximum amount of compensation payable, the Board shall take into account circumstances prevailing in the capital market,” the rule further said.
In the statement, the IPF confirmed that “at its meeting of November 18, 2021, [it] approved an increase in the maximum compensation sum to investors who have suffered pecuniary losses from N400,000 to N500,000.”
