CHARTERED INSTITUTE OF STOCKBROKERS ACT

(1) There is hereby established a body to be known as the Charteted Institute of Stockbrokers (in this Act referred to as "the Institute") which shall be a body corporate under that name and be charged with the general duty of-
(a) determining what standards of knowledge and skill are to be attained by persons seeking to become chartered members of the Institute and raising those standards from time to time as circumstances may permit;
(b) securing in accordance with the provisions of this Act the establishment and maintenance of a register of honorary fellows, associate members, fellows, members, ordinary members and students of the profession and the publication from time to time of the lists of those persons; and
(c) performing through the Council established by section 3 of this Act the functions conferred on it by this Act.
(2) The Institute shall have perpetual succession and a common seal which shall be kept in such custody as the Council may, from time to time, authorise.
(3) The Institute may sue and be sued in its corporate name and may, subject to the Land Use Act, hold, acquire and dispose of any property, movable or immovable.
(4) Subject to the provisions of this Act, members admitted to the Institute shall be enrolled as members of the profession in the category of-
(a) fellows; or
(b) members; or
(c) associates; or
(d) honorary members; or
(e) honorary fellows.
(5) A person accorded by the Council under this Act status as a Chartered Member of the Institute shall be entitled to the use of that name and shall be enrolled as-
(a) a fellow-
(i) if he satisfies the Council that for a continuous period of five years immediately preceding the application he has been in continuous active practice as a stockbroker;
(ii) if he is the holder of a certificate of the examination of the Institute and approved professional qualification;
(iii) if he is otherwise considered by the Council to be a fit person to be so enrolled;
(b) a member-
(i) if he is the holder of a certificate of the examination of the Institute and approved academic professional qualification; and
(ii) if he is otherwise considered by the Council to be a fit person to be so enrolled;
(c) an associate-
(i) if for a continuous period of not less than three years immediately preceding the application (the period of membership of the institute in the discretion of the Council, counting in that behalf) he has been enrolled as an associate; and
(ii) if he is otherwise considered by the Council to be a fit person to be so enrolled.
(6) An honorary fellow or an honorary member of the Institute shall be a person admitted as such by a resolution of the Council.

(1)
There shall be for the institute a President and two Vice-Presidents who shall be fellows of the Institute, to be elected by the Council and hold office each for a term of two years from the date of election.
(2) The President shall be the chairman at meetings of the institute, so however that in the event of the death, incapacity or inability for any reason of the President, the first Vice-President shall act in his stead for the unexpired portion of the term of office, or as the case may require, and references in this Act to the President shall be construed accordingly.
(3) The President and one of the Vice-Presidents shall respectively be chairman and vice-chairman of the Council established by section 3 of this Act.
(4) If the President or Vice-President ceases to be a member of the Institute he shall ipso facto cease to hold any of the offices designated under this section.

(1) There is hereby established for the Institute a Governing Council of the Institute, (in this Act referred to as the "Council") which shall be charged with responsibility for the administration and general management of the Institute.
(2) The Council shall consist of the following members, that is-
(a) the President of the Institute, who shall be the chairman;
(b) the two Vice-Presidents of the Institute;
(c) a representative of the Securities and Exchange Commission;
(d) a representative of the Nigerian Stock Exchange;
(e) two representatives of the Banker's Committee;
(f) twelve persons to be elected by the Institute;
(g) two persons to represent institutions of higher learning in Nigeria offering courses leading to an approved qualification to be appointed by the Minister;
(h) a representative each of the following Ministries, that is-
(i) Finance;
(ii) Education; and
(iii) Women Affairs and Youth Development;
(iv) past Presidents of the Institute who shall be entitled to serve on the Council for a maximum period of three years from the expiration of their terms of office as President of the Institute.
(3) The provisions of the First Schedule to this Act shall have effect with respect to the qualifications and tenure of office of members of the Council and the other matters therein mentioned.

(1) The Council shall establish and maintain a fund for the Institute.
(2) There shall be paid and credited into the fund established pursuant to subsection (1) of this section-
(a) all fees and other moneys payable to the Council in pursuance of this Act; and
(b) such moneys as may be payable to the Council in the course of the discharge of its functions under this Act.
(3) There shall be paid out of the fund of the Institute-
(a) all expenditure incurred by the Council in the discharge of its functions under this Act;
(b) the remuneration and allowances of the Registrar and other employees of the Institute; and
(c) such reasonable travelling and subsistence allowances of members of the Council in respect of the time spent on the duties of the Institute, as the Council may, with the approval of the Minister, determine.
(4) The Council may invest moneys in the fund in any security created or issued by or on behalf of the Government of the Federation or in any other securities in Nigeria as may be approved by the Council.
(5) The Council may, from time to time, borrow money for the purposes of the Institute and any interest payable on moneys so borrowed shall be paid out of the fund of the Institute.
(6) The Council shall keep proper accounts on behalf of the Institute in respect of each year and proper records in relation to those accounts; and the Council shall cause the accounts to be audited by an auditor appointed by the Council.
(7) The auditor, appointed for the purposes of this section, shall not be a member of the Institute.

(1) It shall be the duty of the Council to appoint a fit and proper person, who shall be a member of the Institute, to be the Registrar for the purposes of this Act, aud such other persons as the Institute may, from time to time, think necessary.
(2) It shall be the duty of the Registrar to prepare and maintain, in accordance with rules made by the Council, a register of names, addresses and approved qualifications and of such other particulars as may be specified in the rules, of all persons who are entitled in accordance with the provisions of this Act to be registered as members of the profession in the category of fellows, members, fellow associates, honorary members, honorary fellows and students and ordinary members and, who, in the manner prescribed by such rules, apply to be so registered.
(3) The register shall consist of five parts of which the first part shall be in respect of honorary fellows, the second part shall be in respect of fellows, the third part shall be in respect of associate members, the fourth part in respect of student members, the fifth part shall be in respect of ordinary members.
(4) Subject to the following provisions of this section, the Council may make rules with respect to the form and keeping of the register and the making of entries therein and in particular-
(a) regulating the making of applications for registration and providing for the evidence to be produced in support of such applications;
(b) providing for the notification to the Registrar, by the person to whom any registered particulars relate, of any change in those particulars;
(c) authorising an enrolled or a registered person to have any qualification which is in relation to the relevant division of the profession, either an approved qualification for the purposes of this Act registered in relation to his name in addition to or, as he may elect, in substitution for any other qualifications so registered;
(d) specifying the fees, including any annual subscription, to be paid to the Institute
in respect of the entry of names on the register, and authorising the Registrar to refuse to enter a name on the register until any fee specified for the entry has been paid;
(e) specifying anything falling to be specified under the foregoing provisions of this section.
(5) Any rules made for the purposes of paragraph (d) of subsection (4) of this section, shall not come into force until they are confirmed at a special meeting of the Institute convened for the purpose or at the next annual general meeting, as the case may be.
(6) It shall be the duty of the Registrar-
(a) to correct, in accordance with the directions of the Council, any entry in the register which the Council directs him to correct as being in the opinion of the Council an entry which was incorrectly made;
(b) to make, from time to time, any necessary alteration to the registered particulars of registered persons;
(c) to record the names of members of the Institute who are in default for more than six months in the payment of annual subscriptions, and to take such action in relation thereto (including removal of the names of defaulters from the register) as the Council may direct or require.
(7) If the Registrar-
(a) sends by post to any registered person a registered letter addressed to him at his address on the register enquiring whether the registered particulars relating to him are correct and receives no reply to the letter within the period of six months from the date of posting it; and
(b) upon the expiration of that period, sends in the like manner to the person in question a second similar letter and receives no reply to that letter within three months from the date of posting it, the Registrar may remove the particulars relating to the person in question from the register:
Provided that the Council may, for any reason which seems to it sufficient, direct the Registrar to restore to the appropriate part of the register any particulars removed therefrom under this subsection.

(1) It shall be the duty of the Registrar-
(a) to cause the register to be printed, published and put out on sale to members of the public not later than two years from the coming into force of this Act;
(b) in each year after that in which a register is first published under paragraph (a) of this subsection, to cause to be printed, published and put on sale as aforesaid, either a corrected edition of the register or a list of alterations made to the register since it was last printed; and
(c) to cause a print of each edition of the register and of each list of corrections to be deposited at the principal office of the Institute, and it shall be the duty of the Council to keep the register and lists so deposited available at all reasonable times for inspection by members of the public.
(2) A document purporting to be a print of an edition of a register published under this section by authority of the Registrar or documents purporting to be prints of an edition of a register so published and of a list of corrections to that edition so published, shall (without prejudice to any other mode of proof) be admissible in any proceedings as evidence that any person specified in the document, or documents read together, as being registered, is so registered at the date of the edition or of the list of corrections, as the case may be, and that any person not so specified was not so registered.
(3) Where in accordance with subsection (2) of this section, a person is in any proceedings shown to have been or not to have been registered at a particular date, he shall, unless the contrary is proved, be taken for the purposes of those proceedings as having at all material times thereafter continued to be or not to be so registered.

(1) Subject to section 13 of this Act and to rules made under section 5 of this Act, a person shall be entitled to be registered as a member of the profession if-
(a) he passes the qualifying examination for registration recognised or conducted by the Council under this Act and completes the practical training prescribed; or
(b) he holds a qualification granted and for the time being accepted by the Institute and satisfies the Council that he has had sufficient practical experience as a member of the profession; or
(c) he holds a qualification granted outside Nigeria and for the time being accepted by the Institute and is by law entitled to practice for all purposes as a professional stockbroker in the country in which the qualification was granted.
(2) An applicant for registration under this Act shall, in addition to evidence of qualification, satisfy the Council that-
(a) he is of good character;
(b) he has attained the age of 21 years; and
(c) he has not been convicted in Nigeria or elsewhere of an offence involving fraud or dishonesty.
(3) The Council may, in its sole discretion, provisionally accept a qualification produced in respect of an application for registration under this section, or direct that the application be renewed within such period as may be specified in the direction.
(4) Any entry directed to be made in the register under subsection (3) of this section, shall show that the registration is provisional and no entry so made shall be converted to full registration without the consent of the Council, signified in writing in that behalf.
(5) The Council shall, from time to time, publish in the Gazette particulars of qualifications for the time being acceptable for registration by the Institute.

(1) The Council may approve any qualification for the purposes of this Act and may for those purposes approve-
(a) any course of training at an approved institution which is intended for persons who are seeking to become or are already members of the profession and which the Council considers is designed to confer on persons completing it sufficient knowledge and skill for the practice of that profession;
(b) any qualification which, as a result of examination taken in conjunction with the course of training approved by the Council under this section, is granted to candidates reaching a standard at the examination, indicating in the opinion of the Council, that the candidates have sufficient knowledge and skill for the practice of the profession.
(2) The Council may, if it thinks fit, withdraw any approval given under this section in respect of any course, qualification or institution but before withdrawing such an approval the Council shall-
(a) give notice that it proposes to do so to the person in Nigeria appearing to the Council to be a person by whom the course is conducted or the qualification is granted or the institution is controlled, as the case may be;
(b) afford such person an opportunity of making to the Council representations with regard to the proposal; and
(c) take into consideration any representations made as respects the proposal in pursuance of paragraph (b) of this subsection.
(3) As regards any period during which the approval of the Council under this section for a course, qualification or institution is withdrawn, the course, qualification or institution shall not be treated as approved under this section; but the withdrawal of such an approval shall not prejudice the registration or eligibility for registration of any person who, by virtue of the approval, was registered or eligible for registration immediately before the approval was withdrawn.
(4) The giving or withdrawal of an approval under this section shall have effect from such date, either before or after the execution of the instrument signifying the giving or withdrawal of the approval, as the Council may specify in the instrument and the Council shall-
(a) as soon as may be, publish a copy of every such instrument in the Gazette; and
(b) not later than seven days before its publication, send a copy of the instrument to the Minister.

(1) The Council shall, subject to the provisions of section 11 of this Act, keep itself informed of the nature of-
(a) the instructions given at approved institutions to persons attending approved courses of training; and
(b) the examinations as a result of which approved qualifications are granted, and for the purposes of performing that duty the Council may appoint, either from among its own members or otherwise, persons to visit approved institutions or to attend such examinations.
(2) It shall be the duty of the person appointed under subsection (1) of this section to report to the Council on-
(a) the sufficiency or otherwise of the instruction given to persons attending approved courses of training at institutions visited by him;
(b) the adequacy or otherwise of the examinations conducted at any institution inspected by him; and
(c)
any other matter relating to the institutions or examinations on which the Council may, either generally or in a particular case, request him to report,
but no person shall interfere with the giving of any instruction or the holding of any examination.
(3) On receiving a report made in pursuance of this section, the Council may, if it thinks fit and shall, if so required by the Institute, send a copy of the report to the person appearing to the Council to be in charge of the institution or responsible for the examinations to which the report relates; requesting that person to make observations or report to the Council within such period as may be specified in the request, not being less than one month beginning with the date of the request.

(1) There shall be a tribunal to be known as the Chartered Institute of Stockbrokers Disciplinary Tribunal (in this Act referred to as "the Tribunal"), which shall be charged with the duty of considering and determining any case referred to it by the Investigating Panel established under subsection (3) of this section, and any other case of which the Tribunal has cognisance under the following provisions of this Act.
(2) The Tribunal shall consist of the President of the Council and six other members of the Council appointed by the Council.
(3) There shall be a body, to be known as the Chartered Institute of Stockbrokers Investigating Panel (in this Act referred to as "the Panel") which shall be charged with the duty of-
(a) conducting a preliminary investigation into any case where it is alleged that a member of the profession has misbehaved in his capacity as such a member or should for any other reason be the subject of proceedings before the Tribunal; or
(b) deciding whether the case should be referred to the Tribunal; or
(c)
submitting a report on any action taken in the past to the Tribunal.
(4) The Panel shall be appointed by the Council and shall consist of four members of the Council and one member who is not a member of the Council.
(5) The provisions of the Second Schedule to this Act shall, so far as they are applicable to the Tribunal and Panel respectively, have effect with respect to those bodies.
(6) The Council may make rules not inconsistent with this Act as to acts which constitute professional misconduct.

(1) Where-
(a) a person registered under this Act is adjudged by the tribunal to be guilty of infamous conduct in any professional respect; or
(b) a person registered under this Act is convicted, by any court in Nigeria or elsewhere by any court or tribunal having power to award punishment for an offence (whether or not such offence is punishable with imprisonment) which in the opinion of the Tribunal is incompatible with the status of a member of the profession; or
(c) the Tribunal is satisfied that the name of any person has been fraudulently registered, the Tribunal may, if it thinks fit, give a direction reprimanding that person or ordering the Registrar to strike his name off the relevant part of the register.
(2) The Tribunal may, if it thinks fit, defer its decision as to the giving of a direction under subsection (1) of this section until a subsequent meeting of the Tribunal.
(3) No decision of the Tribunal shall be deferred under subsection (2) of this section for periods exceeding one year in the aggregate.
(4) As far as possible no person shall be a member of the Tribunal for the purposes of reaching a decision which has been deferred or further deferred, unless he was present as a member of the Tribunal when the decision was deferred.
(5) For the purposes of subsection (1) of this section, a person shall not be treated as convicted unless the conviction stands at a time when no appeal or further appeal is pending or may (without extension of time) be brought in connection with the conviction.
(6) When the Tribunal gives a direction under subsection (1) of this section, the Tribunal shall cause notice of the direction to be served on the person to whom it relates.
(7) The person to whom such a direction relates may, at any time within twenty-eight days from the date of service on him of the direction, appeal against the direction to the Federal High Court and the Tribunal may appear as respondent to the appeal and, for the purpose of enabling directions to be given as to the costs of the appeal and of proceedings before the Tribunal, the Tribunal shall be deemed to be a party thereto whether or not it appears on the hearing of the appeal.
(8)
A direction of the Tribunal given under subsection (1) of this section shall take effect where-
(a) no appeal under this section is brought against the direction within the time limited for such an appeal, or on the expiration of that time; or
(b) such an appeal is brought and is withdrawn or struck out for want of prosecution, on the withdrawal or striking out of the appeal;
(c) such an appeal is brought and is not withdrawn or struck out as aforesaid, if and when the appeal is dismissed.
(9) A person whose name is removed from the register in pursuance of a direction of the tribunal under this section shall not be entitled to be registered again except in pursuance of a direction in that behalf given by the Tribunal on the application of that person.
(10) A direction under this section for the removal of a person's name from the register, may prohibit an application under subsection (9) of this section by that person until the expiration of such period from the date of the direction (and where he has duly made such an application, from the date of his last application) or as may be specified in the direction.

(1)
Any person not being a member of the Incorporated Institute who, but for this Act, would have been qualified to apply for and obtain membership of the Incorporated Institute may, within a period of three months from the commencement of this Act, apply for the membership of the Institute in such a manner as may be prescribed by the Council.
(2) Where an application under subsection (1) of this section is approved by the Council, the applicant shall be registered, as the case may be, according to his qualification.

(1) The Council may make rules for-
(a) the training of registered members of the profession and of suitable persons in professional practice; or
(b) the supervision and regulation of the engagement, training and transfer of such person.
(2) The Council may also make rules-
(a) prescribing the amount and date for payment of the annual subscription and annual renewal of a studentship and for such purpose, different amounts may be prescribed by the rules for a fellow, member, associate, honorary member, honorary fellow or student of the Institute;
(b) prescribing the form of licence to practice to be issued annually or, if the Council thinks fit, by endorsement on an existing licence;
(c) restricting the right to practice as a chartered member of the profession in default of payment of the amount of the annual subscription where the default continues for longer than such period as may be prescribed by the rules;
(d) restricting the right to practice as a member of the profession if the qualification granted outside Nigeria does not entitle the holder to practice as a member of the profession; and
(e) prescribing the period of practical training in the office of a chartered member of the profession in practice to be completed before a person qualifies for a licence to practice as a member of the profession.
(3) Rules when made shall, if the chairman of the Council so directs, be published in the Gazette.

The Institute shall-(a) provide and maintain a library comprising books and publications for the promotion and advancement of knowledge of the profession, and such other books and publications as the Council may think necessary for that purpose; and
(b) encourage research into stockbroking methods and allied subjects to the extent that the Council may, from time to time, determine.

Rules made for the purposes of this Act shall be subject to confirmation by the Institute at its next annual meeting or at any special meeting of the Institute convened for the purpose, and if then annulled shall cease to have effect on the day after the date of annulment, but without prejudice to anything done in pursuance or intended pursuance of any such rules.

(1) If any person, for the purpose of procuring the registration of any name, qualification or other matter-
(a) makes a statement which he believes to be false in a material particular; or
(b) recklessly makes a statement which is false in a material particular, he is guilty of an offence.
(2) If, on or after the coming into force of this Act, any person who is not a member of the Institute practices as a member or uses any name, title, addition or description implying that he is a member of the Institute, he is guilty of an offence.
(3) In the case of a person referred to in section 12 of this Act-
(a) the provisions of subsection (2) of this section shall not apply in respect of anything done by him during the period of three months mentioned in that section; and
(b)
if within that period he duly applies for membership of the institute, then unless within that period he is notified that his application has not been approved, the provision of subsection (2) of this section shall not apply in respect of anything done by him between the end of that period and the date which he is registered or is notified as aforesaid.
(4) If the Registrar or any other person employed by or on behalf of the Institute wilfully makes any falsification in any matters relating to the register, he commits an offence.
(5) A person guilty of an offence under this section is liable-
(a) on summary conviction, to a fine of an amount not exceeding N500,000 ; or
(b) on conviction on indictment, to a fine of an amount not exceeding N5,000 or to imprisonment for a term not exceeding two years, or to both such fine and imprisonment.
(6) Where an offence under this section which has been committed by a body corporate is proved to have been committed with the consent or connivance of or to be attributable to any neglect on the part of any director, manager, secretary or other similar officer of the body corporate or any official purporting to act in any such capacity, he, as well as the body corporate, shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

(1) On the commencement of this Act-
(a) all assets and liabilities held or incurred immediately before that day by or on behalf of the Incorporated Institute shall, by virtue of this Act and without any further assurance, vest in the Institute and be held by it for the purposes of the Institute established;
(b) the Incorporated Institute shall cease to exist; and
(c) subject to subsection (2) of the section, any act or thing made or done by the Incorporated Institute shall be deemed to have been made or done by the Institute established by this Act.
(2) The provisions of the Third Schedule to this Act shall have effect with respect to matters arising from the transfer by this section to the Institute of the property of the Incorporated Institute and with respect to the other matters mentioned therein.

In this Act, unless the context otherwise requires-
"Council" means the Council established as the governing body of the Institute under section 3 of this Act;
"fees" includes annual subscriptions;
"Incorporated Institute" means the Nigerian Institute of Stockbrokers incorporated under the Companies and Allied Matters Act;
"Institute" means the Chartered Institute of Stockbrokers established under section 1 of this Act;
''member'' means a member of the Council and includes the President and Vice- Presidents;
"Panel" has the meaning assigned thereto by section 10 of this Act;
"President" and "Vice-President" mean respectively the office holders under those names in the Institute;
"register" means the register maintained in pursuance of section 5 of this Act;
"Tribunal" has the meaning assigned thereto by section 10 of this Act.

This Act may be cited as the Chartered Institute of Stockbrokers Act.