| Abbey building. |
Abbey Mortgage Bank Plc has been cleared of allegations
regarding insider trading during a closed period, as initially stated in the
Nigerian Exchange’s X-Compliance Report. After a review of the circumstances
surrounding the case, the Nigerian Exchange (NGX) has decided not to enforce
any penalties against the bank.
The initial report, dated May 10, had implied a breach of
Rule 17:18, which governs the period of closure for trading activities by
insiders who possess material, non-public information. Such periods are
critical in maintaining market integrity and investor trust. However, upon
closer examination and considering the explanations provided by Abbey Mortgage
Bank, the NGX concluded that there was no substantial violation warranting a
penalty.
Instead of a penalty, the NGX has mandated that Abbey
Mortgage Bank attend a compliance training session, which is intended to
reinforce adherence to regulatory standards and further ensure the bank’s
commitment to best practices in corporate governance. This training, costing
One million, two hundred and thirty thousand, one hundred and eighty
(1,230,180) naira, highlights the NGX’s dedication to education and compliance
over punitive measures.
Abbey Mortgage Bank, a leader in the Nigerian mortgage
sector since its incorporation in August 1992, has continually demonstrated
resilience and stability. With strategic growth initiatives, such as the
addition of a significant investor in 2020, the bank has shown remarkable
progress, including a 250% increase in customer deposits from N6 billion to N21
billion in 2021 and shareholders’ funds exceeding N8.5 billion.
This positive resolution highlights the importance of due
process and the NGX’s role in maintaining transparency while supporting the
growth and integrity of listed companies. Abbey Mortgage Bank’s proactive
response and subsequent exoneration reinforces its reputation as a trusted and
compliant financial institution, poised for continued success in the mortgage
banking sector.