NGX RegCo’s Code of Conduct for Stockbrokers Takes Effect October 3
By Aduragbemi Omiyale
A new Code of Conduct for Approved Persons of Trading License Holders, otherwise known as stockbrokers, has been introduced by the Nigerian Exchange (NGX) Regulation Limited (NGX RegCo).
It was disclosed that the ethical guideline was designed to ensure professionals dealing with the trading of shares at NGX Limited follow high standards. Furthermore, it highlights the expected standards and values that Approved Persons must display at all times when conducting their businesses at all times.
The idea of the code of conduct for stockbrokers, according to the regulator, is to deepen the market and foster professionalism, integrity, and fairness in the interactions of brokers with clients, employers, employees, regulators, and other relevant stakeholders, so as to strengthen investor confidence and pave the way for a sustainable and thriving market.
“At NGX RegCo, we understand the profound impact that a strong ethical foundation can have on the integrity and sustainability of the capital market.
“The Approved Persons Code of Conduct is an important step towards further strengthening a market where confidence is essential.
“We encourage our Trading Licence Holders’ Approved Persons to fully embrace this code, demonstrating their commitment to best and fair practises and the highest professional standards.
“These are critical factors for establishing a market based on honesty and accountability, which will promote market depth, growth, and economic development,” the chief executive of NGX RegCo, Ms Tinuade Awe, said.
Also commenting, the Head of Broker-Dealer Regulation at NGX RegCo, Mr Olufemi Shobanjo, explained that, “The Code of Conduct for Approved Persons of Trading Licence Holders reflects our ongoing efforts to improve the regulatory framework of the Nigerian capital market.
“We strongly encourage all Approved Persons of Trading Licence Holders to familiarise themselves with the Code and ensure its implementation and compliance within their organisations.
“At NGX RegCo, we stand ready to guide and support all stakeholders to ensure the smooth and hitch-free adoption of the code, thereby cementing the foundation for a more robust and ethical capital market in Nigeria.”
Business Post recalls that in August 2023, the Securities and Exchange Commission (SEC) approved the new code, which the NGX RegCo said would become effective from Tuesday, October 3, 2023.