NSE wants brokers to confirm client orders, mandates before execution

The Nigerian Stock Exchange (NSE) is insisting that dealing members must confirm all client orders or mandates made by fax, telephone (voice or text) or electronic email before execution.

The Exchange said this decision arises because it has observed an increasing trend of cyber fraud and scam mail sent by fraudsters/impersonators to Dealing Member Firms.

The NSE further reminded dealing members to conduct proper KYC on all clients and report suspicious transaction reports (STR’s) to the Securities and Exchange Commission (SEC) and the Nigerian Financial Intelligence Unit (NFIU).

Dealing members were also informed to report all cases of suspected fraud to the Exchange for a collaborative effort towards sanitising the market.

“Dealing members are advised to confirm all client orders or mandates made by fax, telephone (voice or text) or electronic email before execution. We refer to our circular dated January 23, 2014 referenced NSE/BDR/EA/01/14 on Identity Fraud and Enhanced Customer Due Diligence (KYC),” the NSE said yesterday.