The Securities and Exchange Commission (SEC) on Wednesday hinted that it would soon roll out regulations that would guide investors of financial technology (FinTech) products in the country’s capital market.
The Acting Director General, Ms. Mary Uduk, who gave this hint at a lecture in Abuja, explained that the move was in furtherance of the commission’s regulatory drives to transit the nation’s bourse to a technology-driven capital market.
She maintained that as the regulator of the nation’s capital market, the Commission was interested in investments that people are making, especially given the spate of digitalization of business and investment processes.
The regulator clarified further: “If we will regulate this market and understand what is happening we need our staff to understand the rudiments of FinTech. Very soon the whole world will move to technology for regulation. Other jurisdictions have already gone far into it with some of them already amending their rules in that direction.
“The International Organization of Securities Commissions (IOSCO) is on it and there is a lot on it already all over the world and we can’t be left behind. We are very much interested in some of the most active areas of Fintech innovation like block chain technology, crypto currencies and how they affect investors” Uduk added.
The SEC boss noted further that as the regulator of the capital market, it remained the responsibility of the SEC to find out how such investments are going on and if they meet set standards because when investors lose money they will come back to the SEC.
She stressed that this was why the commission’s management are seeking to understand what FinTech is all about to enable us regulate the market properly.
On the growing influence of Fintechs in the capital market, the investment expert urged investors to take advantage of Fintech offerings in moving the capital market forward.
This is even as she emphasized the commission’s commitment to capacity building, knowledge sharing, advocacy and collaboration with relevant entities.
Uduk recalled that at the last Capital Market Committee’s (CMC’s) meeting in Lagos, the committee members agreed to set up a Committee to draw a Fintech Adoption roadmap for the Capital Market.
She said that the Executive Director Information Technology and Operations of Access Bank Mr. Ade Bajomo, was appointed as the Chairman of the Capital Market Committee on Fintech Roadmap for Capital Markets in Nigeria.
In his presentation, at the forum, Bajomo advocated the need for regulators to understand what FinTech was all about as that is where the world is moving to now.
Bajomo, who is also the Deputy President of FinTech Association of Nigeria (FinTechNGR), noted further that regulators needed to know what to regulate, how to regulate it, protect investors as well as drive commerce as if they don’t regulate this properly, it could hinder the growth of Africa.
He explained: “We have to get into the digital agility and understand that the old way of doing things will not work in this digital age. Whether we like it or not, people will adopt digitalization, it is just inevitable. It is the simplicity that is driving these entire reforms.
“Our markets have to reposition to provide the proper regulations to facilitate entry and exit by these people which will lead to raising of funds, bringing of new products and driving the FinTech revolution”, he added.
The Access Bank chief advised the SEC to ensure there are proper regulations that would enhance cyber security as it is the single biggest threat to the FinTech revolution.
In his remarks, President FinTechNGR, Dr. Segun Aina said “FinTech has supported the banking industry tremendously and the capital market will also greatly benefit from it. In every aspect of financial services, FinTech important and that is why we are driving the process in Nigeria”.
Financial Technology (FinTech) entity relates to a business that aims at providing financial services such as personal financial management, insurance, payment etc. by making use of software and other modern technology.
