Question:
1.6 Is there any similar Tribunal in the financial markets outside Nigeria?
Answer:
Yes. There are various markets abroad that implement similar Tribunals. The Financial Services and Markets Tribunal (FSMT) of the United Kingdom, the Securities Appellate Tribunal (SAT) of India and the Hong Kong Market Misconduct Tribunal (MMT) are examples amongst others.
Question:
1.5 How is the Tribunal's operation different from that of a traditional High Court?
Answer:
The Tribunal combines the rule of law applicable in traditional law courts with the responsiveness, flexibility, speed and cost effectiveness associated with specialised courts and alternative disputes resolution (ADR) systems. The Tribunal has specialised knowledge of the capital market/securities and pension's law and operations due to the varied technical and operational skills of its members and staff which it applies in deciding each case brought before it.
The Tribunal has a Technical & Operations Department and a Legal Services Department responsible for world-class technical and legal research support services in addition to other external expert advice obtained as the need arises. The Tribunal is not bound strictly by the rules of evidence applicable in traditional courts.
Another fundamental difference between the Tribunal and other traditional law courts is that each party could represent himself or appoint a representative who may not be a legal practitioner. (See paragraph 1.11 below please).
Procedure before the Tribunal is regulated by the Investments and Securities Act, 1999 and the Tribunals Rules of Procedure.
Question:
1.4 What are the Powers of the Tribunal?
Answer:
The Act empowers the Tribunal, among others, to:
i) Summon and enforce the attendance of any person;
ii) Examine persons on oath;
iii) Require the discovery and production of documents;
iv) Dismiss an application for default;
v) Decide matters ex-parte; and
vi) Do anything, which in the opinion of the Tribunal is incidental or ancillary to its functions under the Act.
Question:
1.3 What types of cases does the Investments and Securities Tribunal deal with?
Answer:
The Tribunal is empowered to hear all civil disputes in both the capital market and Pensions administration.
These disputes may be between participants; investors, self-regulatory organisations and operators as well as the Securities and Exchange Commission (SEC) the apex regulator in the capital market and also between the National Pensions Commission (PenCom) and all parties involved in any pension dispute.
Its jurisdiction includes:
A. Capital Market:
i. All disputes and controversies arising under the Investments and Securities Act (ISA) 1999 and the rules made thereunder;
ii. Interpretation of ANY LAW or REGULATION to which the ISA applies;
iii. Disputes between the Securities and Exchange Commission (SEC) and any Exchange;
iv. Disputes between capital market operators and any exchange;
v. Disputes between capital market operators;
vi. Disputes between capital market operators and their clients; and
vii. Disputes between quoted companies and the regulators..
Examples of Capital Market Cases that may be brought before the IST include:
a. Misappropriation of clients' funds by a stockbroker,
b. Non-remittance of issue proceeds by an Issuing House to the issuer/company,
c. Non-remittance of dividends by a Registrar/ Public company/ Stockbroker,
d. Late transfer and/or registration of shares/ stocks by any stockbroker,
e. Disputes over mergers and acquisition between the shareholders and the public quoted company, self regulatory authority, the SEC etc,
f. Disputes between operators and any SRO in the market (e.g.: stockbrokerage firm and a stock exchange and dispute between a registrar and exchange) etc;
g. Disputes arising from the rules, regulations and such other guidelines made by the SEC, any securities exchange,
h. Dispute arising from any decision, notice and/or decision issued by the SEC,
i. Appeals against disciplinary measures by SEC, like suspension and/or baring participants from the market;
j. Appeals against delisting of any security or company by an Exchange; and
k. Disputes/claims arising from misrepresentations or false statements in offer documents or in a Securities transaction.
B. Pensions:
By virtue of the Pensions Reform Act 2004, the Investments & Securities Tribunal is also empowered to adjudicate on pensions disputes in Nigeria, on reference from the PenCom.
Under section 93 of the Pensions Reform Act, 2004, a party or body corporate aggrieved or dissatisfied with any action or decision of the National Pension Commission may refer the matter to the IST. These disputes can be between Pensions Fund Administrators (PFA) and their clients, the beneficiaries of the pension funds, Pension Fund Custodians (PFC) and PFA and their clients or any of these parties against the National Pension Commission (PenCom).
Examples of Pension disputes that could be brought before the Tribunal include but are not limited to the below listed:
i) Misappropriation of client's money by Pension Funds Administrator (PFA) and/or Pension Fund Custodian (PFC);
ii) Non-payment of pension as at when due by a PFA;
iii) Non-crediting or wrong crediting of a beneficiary's contribution(s) benefits arising from investments of his/her fund by a PFA/PFC;
iv) Disputes over pensions between the beneficiaries /pensioners and the PFA/PFC, (PenCom) etc;
v) Disputes between PFA and PFC;
vi) Disputes arising from the rules, regulations and such other guidelines made by (PenCom);
vii) Disputes arising from any decision, notice and / or decision issued by (PenCom);
viii) Appeals against disciplinary measures by PenCom such as suspension and/or barring of any participant from the Market;
ix) Appeals against de-licensing of any PFA/PFC by the PenCom; and
x) Disputes/claims arising from misrepresentation or false statements in PFA reports/documents or in pensions investments.
Question:
1.2 What is the objective of the Tribunal?
Answer:
The Tribunal has, as its primary objective, the timely and efficient resolution of investments/capital market and pensions disputes with fairness, flexibility and transparency. It aims at being a world-class financial markets tribunal that dispenses justice to all participants without fear or favour.
Question:
1.1 What is the Investmens and Securities Tribunal?
Answer:
The Investments and Securities Tribunal (IST) was established under Section 224 of the Investments and Securities Act (ISA), 1999. It was duly constituted with the approval of the President and inaugurated by the Honourable Minister of Finance on the 19th of December 2002. It is a dedicated, specialized and fast-track civil court for the resolution of disputes arising from investments and securities transactions in an accessible, flexible and cost-effective, as well as efficient and transparent manner. The ISA'99 stipulates that all matters before the Tribunal are to be dispensed with within 90 days.
In addition, Section 93 of Pensions Reform Act, 2004, empowers the IST to adjudicate on pensions disputes in Nigeria. It is a major component of the reform of the Legal framework for the capital market and Pensions administration in Nigeria; with a view to evolving a more transparent, fair and secure financial sector that is responsive to the Rule of Law. By virtue of the ISA '99, the Tribunal is mandated to resolve disputes within a maximum period of 90 days and its awards or judgments shall be enforced as judgments of the Federal High Court and appeals lie directly to the Court of Appeal.
Membership of Tribunal
The Tribunal has an Honourable Chairman and 8 other Honourable Members, (�Capital Market Assessors�) who must be either legal practitioners and/or experienced capital market professionals. The Tribunal also has a Secretary who is a legal practitioner and is responsible for administration of the Secretariat. |
