capital market literacy master plan (cml-mp) interim report
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Capital Market Literacy MASTER PLAN (CML-MP) Interim Report. Outline. Introduction. CML-MP | Introduction. - PowerPoint PPT PresentationTRANSCRIPT
Capital Market Literacy
MASTER PLAN (CML-MP)Interim Report
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OutlineIntroduction
Terms of Reference
Statement of Overall Objective
Review of Local Practice
Methodology
Review of Global Practices
Summary of Findings
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Needs Analysis
Recommendations
Implementation Plan
Conclusion
Introduction
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CML-MP |Introduction
“Literacy” can be defined as a person’s knowledge of a particular subject or field. The synonyms are articulacy, education, knowledge, learning, proficiency, refinement and scholarship.
“Capital Market” can be defined as the Market for raising and trading in long tenured securities in the country’s financial system.
“Capital Market Literacy” is therefore, the level of education, learning, articulacy, proficiency and scholarship of a country’s population about Capital Market Activities.
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CML-MP |Introduction Contd.Observations Studies have shown that Capital Market Literacy is surprisingly low
even in the advanced economies of the world. In Nigeria, illiteracy, amongst other factors, could be said to have
contributed to the crash of Capital Market in 2008/2009. In a similar study conducted by EFINA 2012 showed limited knowledge
about the Financial Market generally and its activities in Nigeria.
…To this end, the Securities and Exchange Commission (SEC) set the ball rolling by Setting up a committee to:i. look into literacy in Nigeria capital Market; and ii. draw up a ten year Capital Market Literacy Master Plan.
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CML-MP |Introduction Contd.
The project will involve:
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Studying what
obtains:1.Globally2. locally
Conducting Needs Analysis
Making recommendati
ons which could improve
the level of Capital Market
Terms of Reference
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CML-MP |Terms of Reference
Examine the current level
of capital literacy in
Nigeria and make
recommendations for ways to
improve on the quality
and depth of knowledge in an effective and efficient
manner.
Identify and review the strengths,
weaknesses, opportunities
and challenges of the current structure of
Nigerian capital market literacy
programs to meet the
immediate and future
developmental aspirations of
the market and the national economy.
Examine current
policies and plans for capital market
literacy and recommend appropriate strategies in line with best practices to
enhance participation in the market
and determine
the reforms;
Suggest ways that could be
adopted to influence a
large population
of Nigerians to make
decisions towards
investing in the capital market.
Consider any
additional issue(s)
required to achieve
the level of capital market literacy
comparable with any world class
capital market.
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Statement of Overall Objective
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CML-MP |Statement of Overall Objective
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To develop a framework for continuously building capacity of all Stakeholders for a wider and more
informed participation in the Nigerian capital market
Methodology
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CML-MP |Methodology
Review Financial /Capital Market Literacy initiatives in other jurisdictions.
Review existing capital market literacy initiatives/activities in Nigeria
Identify Capital Market Stakeholders
Identify and analyze the Capital Market Literacy Needs of Stakeholders
Identify relevant programs to meet the needs of stakeholders
Make necessary recommendations
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Review of Global Best Practices
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USA
Japan
Canada
France Australia
Kenya
Rwanda Brazil
South Africa
India Malaysia
United Kingdom
CML-MP |Review of Global Best Practices
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Summary of Findings
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CML-MP |Summary of Findings Stakeholders
• Our study of financial/capital market literacy programs for other jurisdictions revealed that the following “stakeholders” are involved in the campaign aimed at improving capital market literacy:▫ National Authority (Government policies)▫ Regulatory bodies▫ Industry Operators ▫ Foundations and NGOs▫ Institutional Investors▫ Professional bodies and▫ High Net-worth Individuals
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CML-MP |Summary of Findings Target
• The study also shows that Capital Market Literacy Programs are targeted at the following:
▫ Various organs of government – The Executive, the Legislative and the Judiciary.
▫ Students - Primary, Secondary, Colleges and Universities.▫ Professionals – Lawyers, Accountants, Doctors, Consultants etc.▫ People planning to retire or already retired.▫ Employees in the service of Regulators, Operators and
government parastatal and agencies.▫ Members of professional bodies etc
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CML-MP |Summary of Findings Implementation
• In addition, Capital Market Literacy programs are designed and implemented in various ways viz:
▫ In the curriculum of professional bodies, schools and Universities▫ Workshops, seminars and training programs for operators, regulators and
investors▫ Exhibitions, road shows and annual public lectures▫ Television and Radio talk shows▫ Partnership education arrangements between Associations, Regulators and
Investors▫ Individuals are also encouraged to research and publish books on finance and
capital market related subjects as a way of deepening the understanding of various stakeholders in the market
▫ Professional bodies, Associations and other partnerships also publish journals on financial and capital market related subjects
▫ Postings on websites of Regulatory bodies, professional bodies, Associations, NGOs, Institutional Investors etc
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Review of Nigeria Current Capital Market Literacy
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CML-MP | NIGERIA
• Capital Market Literacy in Nigeria cannot be said to be new because it is as old as the institution of Capital Market.
• Since the financial market crisis of 2008, there have been a growing number of Capital Market Literacy programs in Nigeria.
• However, capital market literacy programs in the country currently lacks strategic direction and proper coordination.
• Efforts are being made in addressing capital market literacy as focus had hitherto being generally on money market literacy.
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CML-MP | NIGERIA
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Securities and Exchange Commission (SEC)• Introduction of capital market studies in the school curriculum (Senior Secondary
Schools curriculum and the university)• Awareness programs at the six geopolitical zones, • Capital market awareness campaigns at NYSC orientation camps, National Quiz
Competition among Secondary Schools
Nigeria Stock Exchange• Organise essays for Secondary and Tertiary Institutions• Free Investor clinic
Chartered Institute of Stockbrokers (CIS)• Awareness programme on capital market at NYSC Orientation Camps ( so far only
Lagos) • Training of ICAN inductees on Capital market at the Annual Induction Program,
Workshops, Seminars, conferences and Continuing Professional Education Programs for Capital Market operators
• Free Investor education programmeInstitute of Capital Market Registrars (ICMR)• Professional examination for members, Mandatory Continues training Programmes
(MCTP) Workshops, Seminar, Annual Conferences and induction and investitures lectures
• Securities and Exchanges Commission (SEC), Chartered Institute of Stockbrokers (CIS), Nigerian Stock Exchange (NSE), the Institute of Capital Market Registrars (ICMR), are the leading players in improving capital market literacy through the following……
CML-MP | NIGERIACapital Market Literacy Channels
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The Capital Market literacy programs are delivered essentially through:
• Printed or published materials▫ such as flyers, booklets, Comic Strips.
• Town Hall meetings, Mass Media ▫ Television, Radio, print media.
• The use of local languages and drama (Home Video) is gradually coming on stream. ▫ The SEC, for example, has released three home videos
–“Breeze”, “Easy Money” and “Mutual Benefits”.
CML-MP | NIGERIAIdentified Stakeholders
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The identified stakeholders in the capital market literacy master plan have been classified to the following:
Regulators
OperatorsListed
Companies
Unlisted Companie
s
Financial Institutions
Investors
Academic Community
NGOs
Society at large
Labour Unions
Academic Community
Government
CML-MP | NIGERIANext Steps
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As a next step, a “needs analysis” will need to be conducted
The need analysis involves a survey to be conducted by a consultant, which
will look at the Target Audience, potential engagement with
capabilities, capabilities needed to engage effectively, current levels of
capabilities and gaps to be addressed.
CML-MP | NIGERIAPrograms Identified
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Some programs identified include:
• Publishing of books and Journals• Curriculum development for schools at all levels.• Organizing of Workshops Seminars and Annual Public Lectures.• Institutionalizing Quiz competitions for schools.• Television and Radio Talk Shows.• Annual Essay Competition• Special training programs for shareholders Associations• Taking part in trade fairs• Hosting of capital market literacy programs on the website of Regulators, Operators and
institutional investors• Nigerian Capital Market Institute(NCMI)• News papers Advertorials• Handbills • Film Production• Setting up a literacy Monopoly Board• Investment games with emphasis on the capital market• Market outreaches• Wealth and health outreach• Nollywood engagements
Questions ?
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