NGX RegCo Introduces Code Of Conduct To Enhance Ethics In Capital Market

In a significant move aimed at upholding ethical standards and fostering professionalism within Nigeria’s capital market, NGX Regulation Limited (“NGX RegCo”) has unveiled the “Code of Conduct for Approved Persons of Trading License Holders.” The Code, approved by the Securities and Exchange Commission (SEC) on August 16, 2023, is set to take effect on October 3, 2023.

The primary objective of this Code is to establish and maintain acceptable standards of behavior, promoting integrity, professionalism, and fairness in the interactions between Approved Persons and various stakeholders, including clients, employers, employees, regulators, and others involved in the market. The introduction of this Code is expected to boost investor confidence and contribute to the long-term sustainability of the market.

The Code places a strong emphasis on maintaining high professional standards, exercising reasonable skill, care, and prudence, and adhering to ethical and practical standards. It outlines the expected values and standards that Approved Persons must uphold consistently during their business operations.

READ ALSO: FG, NGX Create Tech-Driven Path For Startup Listings

Commenting on this development, Ms. Tinuade Awe, Chief Executive Officer of NGX Regulation Limited, emphasized the significance of ethical integrity in the capital market. She stated, “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 practices 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.”

Mr. Olufemi Shobanjo, Head of Broker-Dealer Regulation at NGX RegCo, also shared his perspective on the Code’s introduction. He stated, “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 familiarize themselves with the Code and ensure its implementation and compliance within their organizations. 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.”

With the release of this Code, NGX RegCo demonstrates its commitment to enhancing the ethical and professional standards within the Nigerian capital market, ultimately striving to create an environment that promotes trust, accountability, and sustainable growth. The Code’s implementation is eagerly anticipated by market participants, who view it as a significant step towards achieving these objectives.