Regulatory Alerts2018-10-26 | FPR/DIR/CIR/GEN/07/017Code of Corporate Governance for Mortgage Refinance Companies in Nigeria
The Central Bank of Nigeria (CBN) issued a circular on corporate governance codes for other financial institutions in the country, including mortgage refinance companies (MRCs). The CBN outlines the responsibilities of the board and management, composition and size of the board, separation of powers, appointment and tenure, board committees, remuneration, and board appraisal. The code also covers shareholders' rights, disclosure and transparency, risk management, ethics and professionalism, compliance, and sanctions. MRCs are required to align top management and board remuneration with the long-term interests of the institution and shareholders, and to establish a risk management framework. The code emphasizes the importance of transparency and integrity in reporting, with external auditors providing independent verification of financial reporting. MRCs must also have a whistle-blowing policy to encourage stakeholders to report unethical activities.