The Securities and Exchange Commission, (SEC) has expressed its readiness to collaborate with relevant Alternative Dispute Resolution (ADR) professionals in furtherance of its efforts aimed at ensuring timely and effective dispute resolution in the nation’s capital market.
Director General of the SEC, Mr. Lamido Yuguda, who gave this hint when he hosted the Abuja Chapter of the Chartered Institute of Arbitrators (CIArb) led by its chairman, Mr. Sola Ephraim-Oluwanuga, in meeting with him in Abuja on Wednesday, said collaboration with the professionals remained crucial to sustaining investments in the capital market.
According to him, the need for a veritable dispute resolution mechanism has long been recognized in the capital market based on the fact that traditional litigious and adversarial dispute resolution mechanism has fallen short of achieving its purpose.
Yuguda explained that unless quicker dispute resolution mechanisms such as the ADR are embraced, investors in the market would suffer.
He expatiated: ”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”, the SEC boss added.
Yuguda described the visit by the members of the institute to the commission as apposite and assured them of its readiness to collaborate with the institute whose members are specialists in area of dispute resolution.
Earlier in his remarks, the leader of the CIArb Abuja Chapter said the institute was desirous of partnering with SEC to deepen the access to justice in the securities and investments sector.
He explained that the Institute had 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.
The Chairman clarified: “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.”
