Download CMC-Q1-2016-New Complaints Management Framework

ISYAKU BALA TILDE
Director, Monitoring Department
Securities & Exchange Commission
April 2016
COMPLAINTS MANAGEMENT FRAMEWORK (CMF)
INTRODUCTION
The CMF is aimed at improving the efficiency of complaint management
system & aligning it with international best practice. The CMF would enhance
market efficiency, reduce cost of conflict resolution as well as build confidence
in
the capitalCHALLENGES
market.
EXISTING
 Complains were uncoordinated at the industry level
 Some complains often sent to different agencies at the same time
 SEC handles the bulk of the complaints in the market
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COMPLAINTS MANAGEMENT FRAMEWORK – cont’d
KEY ISSUES ADDRESSED BY SEC RULES
The SEC rules on Complaint Management was released in February 2015.
The rules:
• Gives more responsibilities to public companies, CMOs, SROs and
Trade Groups;
• Mandates SEC, SROs, Recognised capital market trade groups, CMOs
and listed companies to establish policies on complaint management;
• Requires senior management to endorse the policy and be responsible
for its implementation and monitoring;
• Spelt out the process flow and time lines for resolving complaints in
the Capital Market;
• SEC to concentrate on dealing with major cases of market
manipulation, insider trading, accounting frauds and unresolved
complaints.
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COMPLAINTS MANAGEMENT FRAMEWORK – cont’d
WHERE WE ARE
Implementation
 The Commission made consultations with stakeholders (SROs, Trade
Groups, CMOs and Public Listed Companies) on the best way to fully
implement the framework.
 SROs and Trade Groups were directed to sensitize their members and
come up with their complaints management policies.
 CMOs and Public Listed Companies were also directed to come up
with their complaints management policies.
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COMPLAINT MANAGEMENT FRAMEWORK – cont’d
WHERE WE ARE
Nigerian Stock Exchange (NSE)/ Association of Stockbroking Houses of Nigeria (ASHON)
Harmonized framework of the NSE and ASHON is structured as
follows:
 Complaints by investors against Dealing members to be managed
by the NSE;
 Complaints between Dealing members to be managed by ASHON;
 NSE and ASHON were directed to notify their members that
henceforth Broker/Dealers firms related complaints should be
resolved between the brokerage firms and concerned investor(s)
within the timeframe.
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COMPLAINT MANAGEMENT FRAMEWORK – cont’d
WHERE WE ARE
Challenges identified by The NSE

The NSE requested for exemption on timeframe for resolving:
Complaints relating to transactions spanning up to 7 years or beyond may
require more time to enable firms respond to allegations.
Complaints that include criminal elements which are referred to the Exchange,
these complaints are not likely to be concluded within 20 working days.
Appeals against directives/decisions on a complaint may be escalated through
the appeal process at the Exchange and is unlikely to be resolved within 20
working days.

The Exchange also requested for an amendment to the Rule to include a provision
requiring that investors notify the Exchange of complaints lodged with any Dealing
Firms to enable the Exchange track such complaints.
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COMPLIANT MANAGEMENT FRAMEWORK – cont’d
WHERE WE ARE
Compliance status of other SROs/Trade Groups
The SEC received, reviewed and communicated observed deficiencies to the following
SROs/trade groups, which have presented their complaints management policies;




FMDQ OTC PLC
Institute of Capital Market Registrars (ICMR)
Association of Issuing Houses of Nigeria (AIHN)
Central Securities Clearing System (CSCS) PLC (being reviewed)
The Commission is expecting action from other SROs/trade groups such as;






Fund Managers Association of Nigeria (FMAN)
Association of Asset Custodian of Nigeria (AACN)
Association of Corporate Trustees (ACT)
NASD PLC
Nigeria Commodity Exchange (NCX)
Africa Exchange Holdings (AFEX)
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COMPLIANT MANAGEMENT FRAMEWORK – cont’d
WHERE WE ARE
Public Listed Companies
All Public Listed Companies were directed to come up with their complaints
management policies and forward same to the Commission. So far, more than 85%
have complied.
Capital Market Consultants
The following capital market consultants were notified of CMF;
 Capital Market Solicitors Association
 Reporting Accountants
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THANK YOU
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