A policy model for regulating and standardizing financial advisory services in Nigeria’s capital markets

Abstract

This paper presents a policy model for regulating and standardizing financial advisory services in Nigeria’s capital markets, addressing the urgent need for structured oversight to enhance market integrity and investor protection. The model proposes a comprehensive regulatory framework that integrates stringent standards for financial advisors, uniform guidelines for service delivery, and robust compliance mechanisms to ensure adherence to best practices. It emphasizes the establishment of a central regulatory body responsible for setting and enforcing standards, alongside a system of periodic audits and performance evaluations to maintain high-quality advisory services. Key components of the proposed policy include the development of a certification process for financial advisors, mandatory training programs, and the implementation of transparent disclosure requirements to aid investors in making informed decisions. The model also advocates for leveraging technological advancements, such as digital platforms for real-time monitoring and data analytics, to streamline regulatory processes and enhance transparency in financial advisory practices. The policy model aims to address existing gaps in regulatory oversight by providing clear guidelines and enforcement mechanisms to prevent conflicts of interest, ensure ethical conduct, and foster investor confidence. By aligning Nigeria’s capital markets with international best practices and integrating technological solutions, the model seeks to create a more resilient and trustworthy financial advisory environment. Expected outcomes include improved service quality, increased investor protection, and enhanced market efficiency. The model’s implementation will contribute to greater market stability and confidence, supporting sustainable growth in Nigeria’s capital markets. This approach not only addresses current regulatory challenges but also positions Nigeria as a leader in financial advisory standards within the global financial community.