Director General of the SEC, Mr. Lamido Yuguda said this is
key in sustaining investment in the capital market.
The SEC DG stated this when the Abuja Chapter of the
Chartered Institute of Arbitrators (CIArb) led by its chairman, Mr Sola
Ephraim-Oluwanuga held a meeting with him in Abuja Wednesday.
Yuguda stated that the need for a veritable dispute
resolution mechanism has long been recognised in the capital market. He said
that traditional litigious and adversarial dispute resolution mechanism has fallen
short of achieving its purpose, adding that investment in the sector would
suffer if disputes among investors are not well resolved.
According to the SEC DG:
” The whole nature of the market is that people come together to make
investments. But along the line, something happens and the same people actually
fall out.
“And the problem with investment is that if the true parties
to an investment fall out, investment falls. We understand that both parties
usually cling to their positions but there is a superior situation which could
benefit both parties. This is where an arbitrator is needed to actually bring
them to that position. And that arbitrator, who is seen as independent,
performs his professional duty by talking to the parties.”
He said the visit by the members of the institute could not
have come at a better time, assuring that the commission partnering with
institute whose members are specialised in area of dispute resolution is
actually highly beneficial to both the SEC and practitioners in the capital
market.
Earlier, the CIArb Chairman, Mr. Ephraim-Oluwanuga said the
institute was desirous of partnering with SEC to deepen the access to justice
in the Securities Industry.
He said CIArb has trained competent International arbitrators
with demonstrable experience in capital market issues, adding that the
institute can also assist the SEC in training and capacity building of its
personnel.
“CIArb can train subject matter experts on securities
dispute resolution. Also, industry may also put CIArb in its agreement as an
Appointing authority to any dispute involving Arbitration, whilst preferring
its members to serve as party nominated arbitrators in the sector” He added.
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