IFSB and SEC Nigeria Successfully Hosted Joint Islamic Capital Market Seminar | Salaam Gateway

Kuala Lumpur, June 29, 2021 – IFSB and SEC Nigeria successfully organized a joint seminar on “COVID-19: Investor Protection and Transparency in the Islamic Capital Market”.

This seminar aimed to raise awareness of the importance of investor protection and transparency in promoting investor confidence, including and especially during adverse financial market conditions. It has also provided a platform to discuss critical policy issues that arise in the context of the current global financial environment. The main objectives of the seminar were: to address issues specific to Islamic finance with regard to investor protection and transparency in the ICM; discuss market best practices for investor protection in ICM and elements of a strong investor protection framework; highlight best practices and guidelines on ICM product disclosure and transparency requirements, especially for Schukūk and Islamic Collective Investment Schemes (ICIS) and identify issues arising from the current global environment, and share the policy actions taken by various regulators and policy makers to address emerging challenges and issues.

IFSB Secretary General Dr Bello Lawal Danbatta said in his welcome address: “Over the years, the ICM sector has been the fastest growing segment of IFSI, ensuring also very popular in non-Muslim majority jurisdictions. To be specific, the ICM sector grew by around 26.9% year-on-year while increasing its share in IFSI’s total assets from 26.5% in 2019 to 30.7% in 2020. As the importance and penetration of the ICM sector increases, the challenge is to develop a strong legal and regulatory framework in place to maintain investor confidence in the sustainability and stability of the market ”. He added that “IFSB is firmly committed to facilitating the development of ICM through the publication of research, the development of international standards and the organization of awareness programs for the benefit of regulators of Islamic finance, supervisors, market players and other stakeholders. In this regard, the IFSB has published relevant standards to provide RSAs with references in formulating surveillance policies for the ICM sector ”

The Managing Director of Sec Nigeria in his opening remarks said: “SEC Nigeria has not wavered in its efforts to fulfill its primary mandate of regulating and developing the Nigerian capital market; protecting investors has been one of our main goals. Many initiatives implemented in this regard include the establishment of the National Investor Protection Fund (NIPF) aimed at compensating investors who suffer losses resulting from the insolvency, bankruptcy or negligence of a market operator. capital; Electronic dividend registration and payment system, dematerialization and direct cash settlement system all aim to ensure an efficient securities transaction process and eliminate / minimize unclaimed dividend cases. In addition, by ensuring that investors are well protected, a complaints management framework has been put in place to speed up and streamline the process of resolving disputes in the marketplace. This is to promote and ensure investor confidence in the market ”.

The themes of the seminar focused on:

  • Introduction to the Islamic Capital Market (for the African region)
  • Strengthening Investor Protection in Islamic Capital Markets
  • Improving transparency in the Islamic capital market (Sukuk and ICIS)
  • Roundtable on Investor Protection in a Challenging Global Environment

The seminar brought together 200 participants from the Regulatory and Supervisory Authority, market players, central banks, the Insurance Regulatory Authority and market players.

The seminar was the first of the ICM joint seminars organized in collaboration with member organizations. For more updates on IFSB events, please visit www.ifsb.org.

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