Sunday, July 21, 2024
25.2 C

SEC Commences Regulatory Incubation Program for Fintechs

The Securities and Exchange Commission (SEC) has opened the Regulatory Incubation (RI) program for FinTech firms operating or seeking to operate in the Nigerian capital market.

This was contained in a Circular dated April 28, 2023 and released by the Commission.

According to the circular, the portal would be opened from the 28th of April, 2023 to the 26th of May, 2023 and registered capital market operators as well as unregistered Fintech innovators that require regulation are encouraged to apply.

The SEC said the move to open a portal comes from a 2021 Circular where the Commission announced the imminent roll-out of the SEC Regulatory Incubation (RI) program for FinTechs operating or seeking to operate in the Nigerian Capital Market.

Announcing the programme, the SEC said: “Please refer to the Securities and Exchange Commission (SEC)circular of June 2021 announcing its Regulatory Incubation (RI) program for FinTech firms operating or seeking to operate in the Nigerian Capital Market.

“This is to inform you that the portal for submitting applications is now ready to receive applications from Cohort 001/23, from 28/04/2023 to 26/05/2023. Cohorts will be announced at specific times.

The Circular identifies those that can apply as “Registered Capital Market Operators, Unregistered Fintech innovators that require regulation, Firms of all sizes and firms that want to enhance investor participation in the Nigeria Capital Market.”

The SEC noted that companies that want to apply and participate in the Regulatory Incubation Program, must demonstrate they meet the 5 eligibility criteria: For application in the Nigeria Capital Market; Safe for investors; A genuine innovation that introduces a new product/process to serve specific investor needs; Able to solve existing compliance or supervisory issues (optional) and ready for testing.

“Please provide as much information as possible about how you meet these criteria when submitting your application. If you are looking to test your proposition, you may apply for an engagement session” the SEC stated.

The Circular further revealed that FinTechs in the areas of, Crowdfunding, Robo Advisory/Digital Investment Advisory and Sub-Broker Serving Multiple brokers using a digital platform are urged not to apply, adding that there are already regulations for them and they should not apply for Regulatory Incubation.

“The Regulatory Incubation (RI) program is designed to address the needs of new business models and processes that require regulatory authorisation to continue carrying out full or ancillary technology-driven Capital Market activities.

“The RI Program has thus been conceived as an interim measure to aid the evolution of effective regulation which accommodates the innovation by FinTechs without compromising market integrity and within limits that ensure investor protection” the SEC added.



Hot this week

Stanbic IBTC Bank Partners Lagos State on Water, Sanitation Infrastructure Funding Summit

Stanbic IBTC Bank, one of Nigeria’s leading financial institutions,...

Stanbic IBTC Launches Ambitious Tree-Planting Campaign in Cross Rivers State

Stanbic IBTC Holdings, in collaboration with One Tree Planted...

PalmPay Named Among Top 250 Fintech Companies in the World by CNBC, Statista

PalmPay, a leading Africa-focused fintech platform, has been included...

AIICO’s Annuity Customers Attest to Financial Stability, Payout Hits N1.3bn Monthly 

AIICO Insurance Plc, a leading insurer in Nigeria, today...

WORLD PR DAY: APRA Advocates Ethical, Responsible Use of AI

The African Public Relations Association (APRA) has called on...


Experts to Brainstorm on Creating Robust Benefits for Retirees

How to create robust pension benefits for retirees would...

MTN Unveils Brand Ambassadors for 2016-2017

In line with its commitment to supporting Nigerian musicians...

MTN Withdraws Suit Against NCC over N780bn Fine

MTN Nigeria says it has withdrawn the suit it...

LAWMA Redeems Cash Prizes to Raffle Draw Winners

By Fabian Ekeruche The Lagos Waste Management Authority (LAWMA) has...

SMEDAN Plans Microfinance Bank, 25 Institutions in TINEDEP Program in 2022


Leadway Successfully Contains Hackers’ Attempt to Breach Network

Leadway Assurance Limited said it detected a potential threat...

Brokers, Arbitrators Partner on Insurance Growth

The Assistant Executive Secretary, Nigerian Council of Registered Insurance...

Profit Taking in Bellwethers Drag Benchmark Index… ASI down 15bps

In yesterday’s trading session, profit taking in bellwethers - GUARANTY (-2.6%), ACCESS (-6.3%)...

Related Articles

Popular Categories