HOW DYNAMIC SHOULD GOVERNING RULES BE?

From January 1, 2017 new rules by the Nigerian stock exchange for the filing of accounts and treatment of default filing will come into effect.
Currently, from an exposure on its website since October, the Securities and Exchange Commission of Nigeria (SEC Nigeria) is proposing new rule for capital market operators on three tiered know your customers framework and amendments to sundry rules on corporate account filing, and proceeds from new issue of financial instruments.
The new know your customer rule put limits to customers accounts in three grades: High, medium and low risk accounts with relevant customers identification requirements with an eye fixed more on checking money laundering and corruptive tendencies.
The filing amendment opens a window for fast tracking filing of annual reports apparently to avoid filing fourth quarter figures as well. It also provides penalty of N10m for any failure to fast track as willingly indicated each year and N50,000 each day such failure persists.
The Financial Reporting Council of Nigeria on October 17, gave immediate effect wings to its National Code of Governance in three categories: For the Private sector; for Not for Profit organisations and for the public sector.
It said the private sector one was compulsory and with immediate effect while the nonprofit one offers the option to comply or justify non-compliance.
In the case of the public sector code, this is not expected to take effect until there is an executive directive from the presidency to that effect.
Indeed, many companies now have to comply with different corporate governance codes or face sanctions that run into thousands if not millions of Naira.
There is the stock exchange version for quoted companies; then the SEC Nigeria version for registered market operators not to talk of the one by the Central Bank of Nigeria for financial institutions.
In the past one year, many of these rules and regulations have undergone changes sometimes with immediate effect like the FRC's circular on reporting and originating currencies that disrupted annual account preparation and filing for many companies this year.
Yet each time the National Assembly meets, members can raise matters of importance that end with resolutions that over turned rules of the corporate game in Nigeria over night.
The same with how the world of finance holds its breath each time the Bankers Committee of the CBN meets monthly and indeed, each time the nation's federal executive meeting takes place monthly.
Pray, how dynamic should rules and regulations that govern organised markets, professional groups and indeed, economic activities be, in trying times?
Can there be under or over regulation? If yes, what are its consequences?
Please let us have your views on these questions as comment at the bottom of this post or through +2347085105951 on Whatsapp; @HAtenaga on twitter,; or via email henryatenaga@gmail.com.
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