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.
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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.