Last week, the Chartered Institute of Stockbroker (CIS) held their two day annual conference in Abuja annual. In this piece KAYODE OGUNWALE looks at some matter arisen from the conference. Excerpt
Introduction
STOCKBROKERS are vital links in the chain of our investment pursuit. The way trading and investment is designed, an individual cannot transact business directly with the Nigerian Stock Exchange except through a stockbroking firm. That makes stockbroking firms very important as far as investment is concerned.
Unfortunately, many stockbroking firms nay, stockbrokers have taken undue advantage of unsuspecting and sometimes gullible investors. There is no doubt that the stock market has generated so much excitement on account of the more than normal returns on investment for players in it. This has attracted many investors to the capital market, many of them unenlightened. Expectedly, the market has attracted stockbrokers who take advantage of ignorant investors. There have been cases of stockbrokers and fund managers that have ran off with investor’s funds. A credible stockbroking firm is pride of any nation. Stockbroking firms primarily are designed to be a vital platform upon which investors should be able to create wealth from the capital market. A stockbroking firm worth its salt ought to be where investors should receive vital information and enlightenment about stock investment. Stock firms are designed to assist their clients pick stocks for investment.
Unfortunately, stockbroking firms have abdicated these important functions. Many firms have been distracted from these primary functions and are now pursuing other activities that have no bearing on their visions and missions. That is why it has become necessary for someone to do a thorough research before pitching tent with any firm.

Stockbroker’s market confidence
Daisy Ekineh, the commissioner in charge of operations at the Securities and Exchange Commission (Sec), speaking on behalf of Arumah Oteh, the director general of the commission said stockbrokers can through acts of commission or omission, either boost or erode investors’ confidence in the capital market.
She stress that they can however, “positively affect the market through professionalism and public enlightenment, especially important in the wake of our recent experience.” The Sec’s head of operations said the building of strong public institutions must begin with “ensuring the proper conduct of members of Chartered Institute of Stockbrokers  and compliance with the laws, rules and regulations guiding their operations.” Ekineh said the conduct of stockbrokers can go a long way in moulding the perception of investors about the financial market, with profound implications for funds mobilisation and allocation for economic development. She said a lot of benefits are derived from the genuine collaborative efforts of the Sec with the various stakeholders and groups in its efforts to reposition the capital market to effectively play its role in the nation’s economic development. Ms Ekineh added that the recent intervention in the Nigerian Stock Exchange “aptly demonstrates the commitment of the Sec based on the conviction that private sector institutions of public interest must be strengthened through acceptable governance practices. Within the commission itself, Ekineh said its internal transformation process of “stronger Sec” is ongoing in the interest of the entire market. She said all market operators must engage in similar introspection for enhanced contributions to the Nigerian economic and political development.
 
On exchange Part
Mr. Emmanuel Ikhazobo, interim administration of the exchange, stated that the final report of the forensic audit of the Nigerian Stock Exchange will be presented first to the stockbroking community before it is made public.  The interim administrator of the exchange told the stockbrokers that forensic investigation is almost concluded and its report will be used as a basis of solving the challenges of integrity, confidence and governance issues at the 50 year old stock exchange.
Ikhazobo said the existing rules and practices of the NSE gave “considerable powers” to the previous management of the stock exchange, raising questions of transparency and accountability. The administrator said part of his transformation agenda was to refashion the memorandum and articles of association of the NSE and ensure that the key stakeholders in the market can now take active part in the running of the affairs of the exchange and ensure that all members of the exchange are equally and fairly treated. Ikhazobo added that the issue of market manipulations is being addressed with the Sec.
 
President Jonathan sympathises on market losses
President Goodluck Jonathan has expressed sympathies with investors and stockbrokers that lost money in the stock market since the meltdown began in September 2008. 
Speaking at the annual conference of the stockbrokers in Abuja, Dr Aliyu Idi Hong who represented the president said the government is working hard on ways to ameliorate the losses that befell investors in the market in the past two years. Dr Aliyu told the conference that the issuing houses and stockbrokers shared part of the blames for the market meltdown. 
He said the market operators must rethink their business ethics and professionalism. The government calls for a better and closer cooperation and effective market regulations by the relevant government agencies. Dr Aliyu said the capital market is a key vehicle for the attainment of the country’s Vision 2020 economic development.