Investor Protection

Investor Protection In line with NASD's commitment to ensuring transparency, integrity , and investor protection, NASD has instituted a Complaint Management Framework to manage investors' complaints against Members. All complaints received by NASD shall be investigated under the direction of the Disciplinary Committee and Board (as required) and resolved in a fair and equitable manner.

NASD Complaint Handling Process

The following are the steps involved in the Complaint handling process of NASD:

Receive Complaints

• i. All Complaints to NASD shall be submitted through any of the following channels:
  • (a) By email to NASD’s dedicated complaints email address: complaints@nasdng.com
  • (b) By commercial courier or personal delivery to NASD’s office addressed to the Chief Compliance Officer NASD Plc, 9th Floor, UBA House, 57, Marina, Lagos.
• ii.All Complaints must contain all material facts in relation to the complaint with supporting documents. It shall also contain the name, physical address, e-mail address, telephone/mobile number, date of complaint and must be signed by the complainant.
• iii. Complaint Forms are available for this purpose here and at our office.

Acknowledge Complaints

• i.The Chief Compliance Officer shall acknowledge in writing complaints received via email within two (2) working days and within five (5) working days for all complaints received at NASD’s physical address.
• ii.The acknowledgment shall indicate the steps being taken to resolve the complaint and when the person complaining can expect a reply.

Assess and Investigate Complaints

• i.The Chief Compliance Officer shall forward the complaint to the Investigative Panel constituted from time to time by the Management of NASD to investigate complaints. Before the investigation, the Investigative Panel shall first undertake an assessment of the complaint received to determine whether or not the issue presented by the Complainant is one that can be considered as a valid and/or competent complaint. The following matters shall not be considered as valid and/or competent complaints:
  • Complaints that are incomplete or not specific
  • Allegations without supporting documents
  • Offering suggestions or seeking guidance or explanation
  • Seeking explanation for non-trading of shares or illiquidity of shares;
  • Dissatisfaction with trading price of the shares of the companies
  • Non-listing of shares of private offers of securities by private companies
  • Disputes arising out of private agreement with companies or intermediaries.
• ii.Complainants are informed that the following complaints need not be made first to Members or NASD but may be lodged directly with SEC:
  • Complaints against NASD
  • Complaints bordering on trade manipulation, accounting frauds and Ponzi schemes
  NASD may refer directly to the SEC any complaint which NASD may have against any of its Members.
• iii.An investigation of complaints received is undertaken by the Investigative Panel in line with the provisions of Rule 3(1) & (2) and Rule 6 of the Rules and Regulations of the NASD OTC Market (“the Rules”) and the NASD Code of Disciplinary Procedure (“the Code”). The content of the Rules and Code are accessible via these links: (Rules) and (Code)
• iv.Upon conclusion of investigation within five (5) business days of receipt of the complaint, where in the opinion of the Investigative Panel a Respondent has committed an infraction or violation of the Rules, it shall submit a written report to the Disciplinary Committee which shall contain its findings and reference to the Rule breached by the Member.
• v.Upon completion of the investigation, NASD shall notify the Commission of the violation and disciplinary action taken within seven (7) days.

Resolve Complaints

• i.If it is proven that a Rule has been breached, the Disciplinary Committee:
  • (a)shall promptly notify the Member of the details of its decision in writing and duration of the action
  • (b)shall require that the Member fulfill its obligation under the Rules
  • (c)may require the Member to pay a fine/penalty for the violation
  • (d)may suspend the Member from trading on the Market for a period not longer than six (6) months
  • (e)may terminate the Member’s membership
  • (f)shall publish details of the violation, the disciplinary action taken and duration of the action either in a National newspaper or by circular Notice to all Members
• ii.The decision of the Disciplinary Committee shall be communicated in writing to the parties upon conclusion of the disciplinary process.
• iii.The parties shall have the right of appeal to SEC against the decision of the Disciplinary Committee within five (5) working days of the decision being communicated to them.

Follow up with Complainant & Review Complaint Management Process

• i. To ascertain the level of satisfaction of Complainants with its complaint management policies and to improve these policies, a feedback form is available for this purpose (please click here to download) for use by persons/institutions who have lodged complaints with NASD.
• ii. Feedback received shall be reviewed by Management on a monthly basis and treated with the aim of improving the complaint management process.

Close Complaint

Notify the Commission of the violation and disciplinary action taken and close the complaint.