Nigeria to strengthen financial benchmarks regulation
The International Organization of Securities Commissions (IOSCO) is looking to implement tighter regulations on financial benchmarks.The International Organization of Securities Commissions (IOSCO) is looking to implement tighter regulations on financial benchmarks.
The organisation said in a statement that it had concerns regarding the potential inaccuracy or manipulation of benchmarks by member stock exchanges, Vanguard reports.
In a bid to strengthen the credibility and integrity of benchmarks used across financial markets, the IOSCO has started a public consultation to develop new policies.
It is looking at the appropriate level of regulatory oversight of the process for establishing benchmark standards.
The IOSCO is also considering setting up credible governance structures to address conflict of interests in the benchmark setting process within the reporting financial institutions as well as in the oversight bodies.
The global financial crisis caused a huge Nigerian stock market crash, but reforms launched in recent years by the federal government have restored some confidence in the market, according to African Economic Outlook.
Amongst these, a campaign against insider dealing and share price manipulation and the enforcement of penalties have improved compliance with the securities law.