Financial Sector Assessment Program : Nigeria - IOSCO Objectives and Principles of Securities Regulation
The regulatory framework for securities markets in Nigeria has improved markedly since the 2002 Financial Sector Assessment Program (FSAP), and particularly in the last five years. Since the adoption of the Investments and Securities Act 2007 (ISA)...
| Main Authors: | , |
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| Format: | Financial Sector Assessment Program (FSAP) |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2013
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2013/05/18170453/nigeria-iosco-objectives-principles-securities-regulation-detailed-assessment-implementation http://hdl.handle.net/10986/15967 |
| Summary: | The regulatory framework for securities
markets in Nigeria has improved markedly since the 2002
Financial Sector Assessment Program (FSAP), and particularly
in the last five years. Since the adoption of the
Investments and Securities Act 2007 (ISA) and the first set
of rules and regulations of the Nigerian Securities and
Exchange Commission (SEC), the regulatory framework has been
further strengthened and expanded. The SEC cooperates both
at the domestic and international level with its
counterparts and other authorities. The SEC focuses on
regulating the products offered to investors through
extensive scrutiny of prospectuses for all securities,
including collective investment schemes. An assessment of
the level of implementation of the International
Organization of Securities Commissions (IOSCO) principles in
Nigeria was conducted from September 4 to 19, 2012 as part
of the International Monetary Fund (IMF)-World Bank FSAP.
The assessment was made based on the IOSCO objectives and
principles of securities regulation approved in 2010 and the
methodology updated in 2011. The IOSCO methodology requires
that assessors not only look at the legal and regulatory
framework in place, but also at how it has been implemented
in practice. The Investments and Securities Tribunal (IST)
provides a process for the resolution of securities markets
related cases that do not have to be resolved in the regular
court system. The purpose of the assessment is primarily to
ascertain whether the legal and regulatory securities
markets requirements of the country and the operations of
the securities regulatory authorities in implementing and
enforcing these requirements in practice meet the standards
set out in the IOSCO principles. The assessment is to be a
means of identifying potential gaps, inconsistencies,
weaknesses and areas where further powers and/or better
implementation of the existing framework may be necessary
and used as a basis for establishing priorities for
improvements to the current regulatory scheme. The
assessment of the country's observance of each
individual principle is made by assigning to it one of the
following assessment categories: fully implemented, broadly
implemented, partly implemented, not implemented and not
applicable. The IOSCO assessment methodology provides a set
of assessment criteria to be met in respect of each
Principle to achieve the designated benchmarks. |
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