News Column

CIS to Engage CBN On Modalities for Margin Loans

August 5, 2014

Helen Oji

THE Chartered Institute of Stockbrokers (CIS), yesterday disclosed plans to engage the new leadership of the Central Bank of Nigeria (CBN) to review issues surrounding margin loans and ensure that processes of capital formation for the loans are sustained and mutually beneficial.

The President of the institute, Albert Okumagba, stated this during a press briefing to announce his investiture slated for August 11, 2014 and his vision for the institute.

Okumagba, while fielding questions from journalists, lamented that there was no appropriate structure on ground for obtaining margin loans in the last 10 years.

"The CIS is working with AMCON, SEC, NSE and federal ministry of finance in addressing issues of margin loans. There is progress in resolution of issues around margin loans and the engagement will continue.

"The structure is not yet in place in the last 10 years but we will review what has been done. We plan to engage the new leadership of CBN to ensure that processes and structures on how margin loan should be handled is put in place. Constructive engagement would address these grey areas," he assured.

Okumagba, who pledged CIS' resolve to continue to play a leading role in advocacy to protect members and their businesses, explained that discussions around demutualization of the NSE and ownership interest are at advance stage.

He assured that the CIS would protect stockbroking firms in the exercise by ensuring that their equity made over the years would be captured in the whole process.

On the ongoing delisting of some stockbroking firms, the president said: "We will monitor the process to make sure that our members are not affected by reduction of registered stockbroking firms. We have good relationship with NSE and we would make sure that members who operate as dealers in the platform have the best operating environment."

He expressed the CIS' commitment to become the leading institute in financial sector by the year 2020, adding that the institute is reviewing key areas to enhance competitiveness and sustainability.

The institute, according to him, has concluded arrangement to use its platform to create and support capacity building, as well as develop finance professionals that would deepen Nigeria's financial inclusion plan.

He explained that the institute targets to mobilise about 150,000 CIS professional diploma students before the end of 2014. He added that the institute's internal processes are upgraded to serve wider spectrum of stakeholders in the Nigerian capital market.

"We want to sell some financial products and our diploma certificate will be a robust platform for this objective. We are discussing with a number of institutes to collaborate in running the programme so that we would have a large number of candidates and they are responding.

"We want to bring value to young people and give them opportunity to explore the possibilities of becoming part of the financial system. We expect that when the National Savings strategy is put in place, this diploma certificate would be a major force to drive savings and investment across the entire financial system," he added.

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Source: AllAfrica

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