The Association of Securities Dealing Houses of Nigeria (ASHON), has urged its members to conduct diagnostic test on their businesses in order to review the models in view of the dynamic changes in the global financial market.
Besides, they have identified lack of financial literacy as one of the challenges responsible for investor apathy, and called for immediate action to step up comprehensive enlightenment programme to attract more participants, particularly, from the booming informal sector.
The organization had in its 2019 Capital Market Summit, held in Lagos recently, proposed a 13-point agenda to deepen the market. The summit had the Theme, “Financial Inclusion: The Capital Market Perspective.”
The agenda articulated operational and regulatory issues that must be addressed in order to move the capital market forward with multiplier effects on the members’ businesses.
The Association stated that “There is an urgent and compelling need for the Securities Dealers to review their business models by taking a cue from the Chinese Model, Pakistan initiative or Mexican model, each of which places premium on financial inclusion through creation of one-stop financial centers across the country, especially, the rural areas where there is high concentration of financially excluded people.”
“Market operators should embark on the creation of innovative, flexible and affordable products that can satisfy the needs of existing and potential investors and tradable on user-friendly technology to promote financial inclusion by attracting investors of different disposable income into the market,” it added.
They noted that the “Lack of financial literacy has excluded many investors from the market, hence, the federal government, capital market regulators and operators should develop a comprehensive financial literacy curriculum, targeted at women, youths and physically challenged while Information and Communications Technology (ICT), NIPOST and other Channels are used for grassroot development outreach. ASHON should collaborate with other trade groups in the Capital Market to intensify advocacy role by engaging the Government, Legislators and Capital Market Regulators on the need to encourage trading in securities through investor-friendly legislation such as tax incentives and creation of enabling trading environment for market operators. There is a need for the federal government to take decisive steps to close the yawning gap between the Capital Market and the Money Markets which has continuously inhibited savings mobilization for long term capital investments in the country.”
ASHON noted further that “In view of the far-reaching policies enunciated in the 10-year Capital Market Master Plan (2015-2025) of the Securities and Exchange Commission (SEC), ASHON and other major stakeholders saddled with the implementation of the Master Plan should conduct regular review of the Plan to accommodate dynamic changes in the market, especially, given the disruptive power of technology and current trends in investor psychology.”
