Investor Education Initiatives An NSE Presentation By Pai Gamde Head| Human Resources The Nigerian Stock Exchange May 2014 | CONTENTS| • Introduction 1 • Overview of the Investor Education Initiatives 2 12-Nov-2013 The Nigerian Stock Exchange 2 |INTRODUCTION| • Financial literacy as defined by the Organisation for Economic Co-operation and Development (OECD) is “the process by which consumers/investors improve their understanding of financial products, concepts and risks and through information, instruction and/or objective advice, develop the skills and confidence to become more aware of financial risks and opportunities, to make informed choices, to know where to go for help, and take effective actions to improve their financial well being”. • The NSE in partnership with the Central Bank of Nigeria (CBN) and other stakeholders intend to implement a National Financial Inclusion Strategy to decrease the number of Nigerians that have no access to financial services from 46.3% to 20% by the year 2020. • Financial Literacy occupies a centre stage in the quest to achieve a overall strategy of financial inclusion, which has strong bearing on financial stability, economic growth and development • NSE as a major capital market operator in recognition of such issues, has established a number of Financial Literacy Program (FLP) initiatives; independently as well as in collaboration with other organisations. 3 12-Nov-2013 The Nigerian Stock Exchange |OVERVIEW| NSE Current FLP initiatives Classification: Business and CSR-Sustainability Business Program Name &Description Target Audience Topics Covered NSE Investor Clinics: Quarterly interactive forums to educate target segments within the Retail (HNIS, Professionals) and Institutional investor groups. Conducted two in 2012 and on track to complete at least 3 in 2013 • • “Grass-root” Investor Education Seminars: Localized investor education events driven through our 13 branch offices, targeted at lowend retail investors (e.g. students, market women etc.) • 12-Nov-2013 Retail investors • • • Institutional investors • • • Retail • investor State & • Local • Government officials The Nigerian Stock Exchange Investment fundamentals(riskrewards) Asset class diversification/portfolio balancing Capital market reforms Valuation Investment fundamentals Investment fundamentals investor(risks-rewards) Capital market reforms Investor rights 4 | OVERVIEW cont’d| NSE Current FLP initiatives Classification: Business and CSR-Sustainability CSR-Sustainability Program Name &Description Target Audience Topics Covered National Essay Competition: Annual essay writing competition for secondary and tertiary students, with essay questions/topics focused on capital market issues/matters • Retail investors • Wide range of capital market topics • Institutional investors School Visits to the NSE Trading Floors: Host class field-trip tours of our trading floors across the country. Tour of the floor and educational overview session gives students a ‘live ‘ view of what happens at a stock Exchange and opens them up to the idea of seeking career opportunities in the capital market the future • Students ( Secondary and Tertiary) • • Tour of NSE trading floors Business of NSE and role in the capital market & economy Career 12-Nov-2013 The Nigerian Stock Exchange • 5 Thank You Stock Exchange House 2 - 4 Customs Street P.O. Box 2457, Marina Lagos Island, Lagos, Nigeria [email protected]