The Board of Trustees (BoT) of the Investors’ Protection Fund (IPF) have assured investors that it remains committed to enhancing investor’ protection in the Nigerian capital market (NCM).
In a statement sent to the investing community, the IPF noted that it has approved an increase in the maximum compensation sum to investors who have suffered pecuniary losses from N400,000 to N500,000.
The statement said, “IPF at its meeting of November 18, 2021 approved an increase in the maximum compensation sum to investors who have suffered pecuniary losses from Four Hundred Thousand Naira (N400,000.00) to Five hundred Thousand Naira (N500,000.00) only.
The BoT reached this decision after due consultation, assessment of the limited resources of the IPF and the volume of claims pending against the IPF as well as the prevailing circumstances in the capital market in determining the increase in the maximum amount of compensation payable.”
According to the IPF, this is in accordance with Rule 26.16 (a) & (c): Amount of Compensation, Rulebook of The Exchange, 2015 (Investors’ Protection Fund Rules) as amended which provides thus: “The maximum compensation payable to an investor who has suffered a loss shall be an amount that is determined by the Board from a written policy from time to time; and where the loss is less than the maximum amount fixed by the Board at any given time, the investor may be paid the full amount of the loss, less any amount or value of all monies or other benefits received or receivable by him from a source other than the Fund in reduction of the loss.