The Securities and Exchange Commission (SEC) Nigeria has opened the Regulatory Incubation (RI) programme for fintechs operating or seeking to operate in the Nigerian Capital Market.
The capital market regulator, in a circular issued on April 28, 2023, stated that the RI portal would be opened from the date to 26th May this year and encouraged all registered capital market operators as well as unregistered fintech innovators that require regulation to apply.
The SEC explained that the initiative was sequel to a 2021 Circular issued by it announcing the roll-out of the RI programme for Fintechs operating or seeking to operate in the nation’s capital market
The latest circular listed 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 commission advised companies that want to apply and participate in the programme to ensure that they met the five eligibility criteria for innovation application in the Nigeria Capital Market; safe for investors; a genuine innovation that introduces a new product/process to serve specific investor needs; and ble to solve existing compliance or supervisory issues (optional) and ready for testing.
The circular further reflected that Fintechs in the areas of Crowdfunding, Robo Advisory/Digital Investment Advisory and Sub-Broker Serving Multiple brokers using a digital platform should not apply, adding that there are already regulations for them and they should not apply for Regulatory Incubation.
The capital market regulator further stated that the RI programme was designed as an interim measure to address the needs of new business models and processes that require regulatory authorization to continue carrying out full or ancillary technology-driven capital market activities.
