Abbey Mortgage Bank Cleared of Insider Trading Allegations
Kayode Tokede
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 N1,230,180, 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.
